SFX Entertainment Provides Update on Going Private Transaction
14 August 2015 - 6:15PM
Business Wire
SFX Entertainment, Inc. (NASDAQ: SFXE) (the “Company”)
announced that its special committee of independent directors, with
the concurrence of Robert F.X. Sillerman (“Sillerman”), the
Company’s Chairman and Chief Executive Officer, has 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. The Company has received an indication
of interest at a price lower than the $5.25 per share offered by
Sillerman in the merger agreement (“the merger agreement”) signed
on May 26, 2015. Sillerman continues to be interested in
taking the Company private, either alone or with one or more
strategic partners, although also at a lower price given the
Company’s share price has declined substantially below that in the
merger agreement. 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.
The October 2 date was chosen to allow potential bidders and
their financing sources to have visibility into the Company’s
performance during its peak festival season, thus providing a full
and accurate picture of the Company’s results and prospects. To
facilitate potential offers during this period, all “no-shop”
restrictions and the related breakup fees provisions applicable to
the Company under the merger agreement will no longer apply,
enabling potential bidders to freely evaluate the Company in light
of the recent substantial decline in its share price. Any new
transaction will be evidenced by a new definitive agreement as the
existing merger agreement is no longer effective.
About SFX Entertainment
SFX Entertainment, Inc. (NASDAQ: SFXE) is the largest global
producer of live events and digital entertainment content focused
exclusively on electronic music culture (EMC) and other world-class
festivals. SFX’s mission is to provide electronic music fans with
the best possible live experiences, music discovery, media and
digital connectivity. SFX was borne out of the technology
revolution and produces and promotes a growing portfolio of live
events that includes leading brands such as Tomorrowland,
TomorrowWorld, Mysteryland, Sensation, Stereosonic, Electric Zoo,
Disco Donnie Presents, Life in Color, Rock in Rio, Nature One,
Mayday, Decibel, Q-Dance, Awakenings, and React Presents, as well
as the innovative ticketing services Flavorus and Paylogic.
SFX owns and operates Beatport, the trusted global home of
electronic music where fans, DJs, and creators connect, discover,
and participate in the evolution of dance music culture. Beatport
offers a complete music experience for everyone, everywhere
including streaming music, mobile apps and a host of ways for the
EMC community to enjoy or download files, attend transformational
festivals and events both in person and online, connect with
like-minded fans and inspirational artists, and receive news,
reviews, and unique insider access.
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Investor Relations:SFX
Entertainment, Inc.Richard Rosenstein, 646-561-6400Chief Financial
Officer & Chief Administrative OfficerorJCIRJoseph Jaffoni,
212-835-8500sfxe@jcir.comorMedia:DKC Public RelationsEd Tagliaferri,
212-981-5182edmund_tagliaferri@dkcnews.com