Nexstar Reaches Deal for Media General Buyout
January 27 2016 - 10:40AM
Dow Jones News
Nexstar Broadcasting Group Inc. on Wednesday said had reached a
deal for its takeover of Media General Inc. for $2.13 billion,
ending a three-way merger standoff with rival deal-seeker Meredith
Corp.
Nexstar will pay $10.55 in cash and 0.1249 of a Nexstar share,
totaling $16.69, for each share of Media General, representing a
3.5% premium over Media General's closing price Tuesday. The deal
represents a 50% premium over the closing share price of Media
General on Sep. 25, the last trading day before Nexstar's public
announcement it was interested in acquiring Media General. The
agreement also includes a so-called contingent value right to
additional money received from the upcoming spectrum auction by the
Federal Communications Commission to buy back airwaves and
repurpose them.
The deal was struck following the termination of the proposed
merger transaction between broadcasters Meredith and Media General,
awarding Meredith a $60 million termination fee. In addition, the
companies said, Meredith will be able to negotiate for the purchase
of certain broadcast and digital assets currently owned by Media
General.
Earlier this month, Nexstar reiterated its commitment to buying
Media General, but didn't raise the stakes even as Meredith refused
to terminate its agreement with Media General. Any deal between
Nexstar and Media General was contingent on Meredith pulling out of
its negotiations with Media General.
Shares of Media General rose 3% premarket to $16.61, while share
of Nexstar and Meredith remained inactive.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
January 27, 2016 10:25 ET (15:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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