SFX Gives Sillerman 2 Weeks To Complete Stock Buy Back, Asset Sale Likely Alternatve
In just over 3 years, Robert Sillerman built SFX Entertainment into an EDM powerhouse. But since taking the company public in October 2013 and raising $260 million with the IPO, the company has seldom met investor expectations.
SFX Entertainment (NASDAQ:SFXE) today announced that had given notice to Robert F.X. Sillerman , the Company’s Chairman and CEO, that he had until 10:00 a.m. on August 13, 2015 to prove that he could finance his promised effort to take the company private including a cash buyback of stockholders at $5.25 per share. As of mid-day Friday, SFXE was trading at $3.16 per share.
The company admitted earlier this week that it had sought other offers, but only found buyers interested in specific parts of the company which include Beatport and EDM festivals Tomorrowland, TomorrowWorld and Electric Zoo.
If Sillerman fails to meet his obligations. a sale of key assets seems likely.
SFX Entertainment also announced today that it will report its 2015 second quarter financial results after the market closes on Monday, August 10, 2015. In light of the announced transaction, the Company does not intend to host a conference call or webcast.
