After seeing their stock plummet once CEO Robert Sillerman missed the deadline to finalize his go-private offer, SFX’s directors are looking to sell off the company in parts or in whole in a new, restriction-free shop period.
Sillerman had until 10 a.m. EDT Aug. 13 to find the funds to take the event behemoth private, but as the cutoff approached, the stock price of SFX (SFXE) dropped beneath $1.50 a share, well below the offered price of $5.25 per share in Sillerman’s go-private deal offered up in May.
InvestorsHub reports that the special committee of independent directors, along with Sillerman, announced today that they “authorized the continued exploration of strategic alternatives for the Company, including the sale of all or substantially all of the Company’s assets in whole or in part.”
Directors said they will consider offers for the entire company, as well as those involving individual assets not central to the Company’s core business, until at least Oct. 2, until which Sillerman still has a chance to complete his go-private purchase by himself or with financial help, however at a new lower price given the decline of the stock value. Sillerman has agreed to cooperate with the committee to obtain the “best available offer for the Company’s shareholders.”
In the meantime, potential investors will be able to assess the value of the company throughout its most profitable quarter (festival season) without the previously held “no-shop” restrictions on soliciting offers while Sillerman got his finances in order. Simply put, it’s all fair game now.
The scramble for Sillerman to find the funds to take SFX private was followed by the announcement that unpaid earnings from Beatport, an SFX-owned company, would be temporarily withheld, although this has since been resolved.