California-based Callaway Golf (legally Topgolf Callaway Brands Corp. (NYSE:MODG)), one of the world?s top three golf brands (Titleist, Callaway Golf, and TaylorMade), is up for sale. A South Korean strategic investor (SI) is reportedly in the running to acquire the company, valued at around $2.98 billion (KRW 4 trillion).

According to the investment banking (IB) industry, Callaway Golf?s major shareholders - BlackRock Advisors LLC (12.09%), Providence Equity Partners LLC (11.48%), and Thomas Dundon (10.11%), a founder of Dundon Capital Partners, a Dallas-based private investment firm - have selected a lead manager and are in the process of selling their stakes and management rights. The major shareholders will reportedly spin off Topgolf, a subsidiary of Topgolf Callaway Brands Corp., and sell only Callaway Golf. Topgolf is a premier entertainment venue featuring indoor golf games, a full-service bar, and a restaurant.

The sports entertainment company was acquired by Callaway Golf in 2020 and the merged company adopted the name Topgolf Callaway Brands. Last year, it had revenue of $1.76 billion. The current rumored sale price for Callaway Golf is around $2.98 billion (KRW 4 trillion).

The price is considered to be reasonable by industry players given its significantly low market capitalization of $2.554 billion (about KRW 3.4 trillion), compared to that of rival Acushnet Holdings (Titleist) of $3.902 billion, and an accompanied management premium. The IB industry has been paying attention to the possibility of Callaway Golf becoming Korean-owned. A South Korean company is reportedly in the running.

If the American sports brand is acquired by a South Korean company, the global big three golf brands will be South Korean. Titleist was acquired by KRX-listed FILA Holdings Corp. in 2011.

TaylorMade was also sold to a Seoul-based private equity firm Centroid Investment Partners LC in 2021. At that time, F&F, a South Korean apparel company, participated as the SI.