Friday, 29 May 2015

SFX share buy back approved by independent directors

Robert FX Sillerman moved closer to taking his EDM giant SFX back into private ownership, after the special committee of independent directors appointed to consider his proposals backed the plan, although at a higher than originally proposed offer silelrman had made. Sillerman floated SFX in 2013, but announced earlier this year that he now wanted to buy back all the shares he doesn't currently control - nearly 63% of the company - There was a mixed reception to the proposal on Wall Street, hence the appointment of the special committee. Sillerman originally offered $4.75 a share, which was above the going rate at the time; shares in SFX were selling for $4.12 on Friday. But the offer has now been increased to $5.25 a share, and it is that bid that the special committee unanimously agreed to back on Monday, leading to the company's board also recommending the deal to shareholders. SFX raised $260 million ahead of its initial public offering in October 2013, with the company being valued at over $1 billion after 20 million shares were sold at $13 a share, around 70% more than today's asking price.

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