SFX Entertainment Inc. said Tuesday it has agreed to be taken
private by Chief Executive Robert Sillerman in a deal that values
the dance and music festival company at about $490 million.
Under the deal, Mr. Sillerman will acquire the remaining 62.6%
of the stock that he doesn't already own for $5.25 a share in cash.
That price tag represents a 27% premium over Friday's closing price
and a boost from his February offer of $4.75 a share.
Shares surged 22% following the news to $5.01.
The New York-based concert promoter went public in October 2013
at $13 a share, but the stock began falling soon after its trading
debut. In 2014, the company reported a loss of $131 million.
SFX said its board has approved the deal, subject to conditions.
The transaction provides for a 45 day "go-shop" period, during
which the company said it would actively solicit and evaluate
competing takeover bids. A successful competing bidder would be
responsible for the $7.8 million termination fee associated with
Mr. Sillerman's bid, the company said.
Mr. Sillerman has agreed to vote his shares in favor of any
superior proposal that has a value of at least 2.5% more than Mr.
Sillerman's highest offer, SFX said Tuesday.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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