On Friday (Aug. 14), as stock sunk to all time low, SFX Entertainment seems destined to be sold off piece by piece. The company announced it had failed to secure financing to go private and was considering bids for parts or the firm as a whole.
At the time, it appeared as though there was a faint possibility that Chairman and CEO Robert Sillerman would take the company at a revised share price in line with current market conditions. According to a statement, Sillerman "reaffirmed his intent" to take the company private with a revised offer that reflects where the stock is currently being traded.
"As I have done from the beginning of this process, I will continue to work cooperatively with the special committee as it seeks to obtain the best possible price for the outstanding stock," Sillerman said in a statement.
At the close of markets on Monday, Aug. 17, SFX's stock had slumped even further to $1.33, a nearly 65 percent drop in price since Feb. 24, when Sillerman first declared his intent to take the company private. It is the lowest price that the company's stock has been recorded since it went public in 2013. SFX was originally listed at $13 a share, which seems quite optimistic now.
The new push to go private comes as SFX appears headed to the chopping block after no satisfactory competing offers were made during a recently completed go-shop period.
Sillerman initially made the offer to take the company private in February at $4.75 per share. After a special committee reviewed the tender, weighing concerns from investors, that number was increased to $5.25 in May.
© 2024 MusicTimes.com All rights reserved. Do not reproduce without permission.
