Cox Enterprises announces $3.80 per share offer
By Mike Boyle
Updated 5 Hour(s) 2 Minute(s) ago
Cox Enterprises, Inc. Monday morning (March 23) that it is commencing a cash tender offer for all of the outstanding publicly held minority interest in Cox Radio, Inc. for $3.80 per share in cash, or a total payment of approximately $69.1 million, including fees and expenses.
The proposal represents a 15.2% premium over Friday's (March 20) closing price and a 21.8% premium over the ten-day volume weighted average closing price.
Cox Enterprises currently owns approximately a 78% equity interest in Cox Radio and has approximately a 97% voting interest. If upon expiration of the tender offer Cox Enterprises owns 90% of Cox Radio's equity, Cox Radio would become a wholly-owned subsidiary of Cox Enterprises.
Cox Enterprises president and CEO Jimmy W. Hayes says, "Given how these economic challenges are affecting the radio industry, we believe that private ownership offers advantages that will assist Cox Radio in attaining its business objectives and managing its capital structure. We have confidence in the long-term potential of Cox Radio and its management team.
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