SFX Fire Sale Begins! Sillerman Buyback Fails, Board Explores Options As SFXE Stock Falls 29%
A day after CEO Bob Sillerman missed his deadline to buy back shares on SFX Entertainment and take the company private, the board finally issued a statement that did little to calm concerned investors.
Let the SFX fire sale begin!
More than 24 hours after CEO Bob Sillerman missed his deadline to buy back shares of SFXE and take the company private, the board issued a statement:
"The special committee and its advisors will entertain offers for the entire Company as well as assets not central to the Company’s core business through at least October 2, 2015 Sillerman has agreed to cooperate with the special committee to obtain the best available offer for the Company’s shareholders."
Sillerman continues to be interested in taking the Company private, said the board , either alone or with one or more strategic partners, but at a lower price than before given the Company’s shares have declined substantially from the $5.25 he originally offered.
At the close of trading Friday, SFXE stock was down 29.o2% for the day to $1.38, an all time low.
In addition to asking for 2 more months, most troubling to investors is that neither Sillerman nor the Board offered a new target stock price for the cash strapped company.
"The October 2 date was chosen to allow potential bidders to have a look at SFXE's performance during its peak festival season. To facilitate offers during this period, “no-shop" restrictions under the merger agreement will no longer apply.
