UPDATE 1-VCG Holding CEO to take co private for about $37 mln

* Deal for $2.25 per share

* Says board approved deal

* Closing expected in Q1 2011

Nov 10 (BestGrowthStock) – Strip club operator VCG Holding Corp
(VCGH.O: ) said it will sell itself to entities controlled by its
chief executive in a going-private transaction worth $2.25 a
share.

The offer from CEO Troy Lowrie, Family Dog LLC, FD
Acquisition Co, and the company’s Chief Operating Officer,
Micheal Ocello, values VCG at a 21 percent premium to its
closing price on Tuesday and a 7 percent increase from Lowrie’s
previous offer.

The deal is worth $36.7 million, based on the company’s
shares outstanding as of Aug. 9.

Last November, Lowrie’s bid to buy the company for $2.10 a
share was opposed by shareholders who said it was inadequate
and represented a conflict of interest for the CEO.

Earlier this year, rival Rick’s Cabaret’s plans to buy VCG
also fell through. [ID:nSGE6300DA]

Shares of the company, which have risen 13 percent since
Lowrie’s bid in July, closed at $1.86 on Tuesday on Nasdaq.
(Reporting by Abhishek Takle in Bangalore; Editing by Don
Sebastian)

UPDATE 1-VCG Holding CEO to take co private for about $37 mln