Apollo Global Management is set to provide over $700m in equity and debt financing to support a $1.8bn take-private bid for Soho House, the hospitality group behind the global chain of members’ clubs, according to a report by the Wall Street Journal.

The buyout is being led by New York-based MCR Hotels and would see Soho House shareholders receive $9 per share, representing a 17.8% premium to its most recent closing price of $7.64. The valuation is based on the company’s 195 million outstanding shares.

Billionaire Ron Burkle, Soho House’s controlling shareholder, is expected to roll over his stake, alongside other existing investors.

The deal follows renewed takeover interest in the business, which has faced increasing shareholder pressure in recent months. In January, Daniel Loeb, founder of hedge fund Third Point, called on Soho House’s board to conduct a “fair” sales process following an earlier take-private proposal.

Soho House, MCR Hotels, and Apollo have not publicly commented on the ongoing talks.

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