SFX Considers Going Private
The head of SFX Entertainment wants to take the dance music promoter private in a deal that values the company at about $390 million.
Photo: NASDAQ.com
Afrojack (center) is flanked by SFX Entertainment board members Shelly Finkel (L), Robert Sillerman and Mitch Slater (R) to ring the closing bell on the NASDAQ stock market in celebration of its Oct. 9 initial public offering.
CEO and Chairman Robert Sillerman has offered $4.75 per share, the company said Wednesday, a 43.9 percent premium to Monday’s closing price. Sillerman made his offer Tuesday and has asked the board to create a special committee to review his bid, SFX said.
Sillerman owns a 41.3 percent stake in the company, according to the data firm FactSet, which means he is offering to pay about $252.5 million for the shares he doesn’t already own.
Shares of SFX Entertainment Inc. climbed 91 cents, or 24.5 percent, to $4.91 in afternoon trading. The stock closed at $3.30 on Monday and rose 40 cents, or 12 percent, to $3.70 Tuesday.
The New York company went public in October 2013 with an offering of 20 million shares that priced at $13 per share. Shares have fallen 56 percent over the last 12 months.
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