SFX Entertainment CEO Offers To Buy Company At $4.75/shr; Stock Surges

(RTTNews) - SFX Entertainment Inc. (SFXE) announced Wednesday that its Chief Executive Officer and Executive Chairman, Robert F.X. Sillerman, has proposed to acquire all of the outstanding shares of common stock of the company not already owned by him for $4.75 per share in cash.

The proposed cash consideration represents an approximately 44% premium to the closing price of the Company's common stock on February 23, 2015, the day before . Sillerman submitted his proposal.

As per the Sillerman's proposal, any stockholders who wish to retain their equity interests in the company would have the opportunity to do so and remain as investors -- alongside Sillerman -- in the company.

Sillerman has requested that the Board appoint a special committee of independent directors to consider his proposal and make a recommendation to the full Board. Sillerman emphasized that he would not proceed with the proposed transaction unless it was approved by the special committee.

In addition, the transaction would be subject to a non-waivable condition requiring approval by holders of a majority of the shares of the Company's common stock not owned by Sillerman or his affiliates.

Sillerman's proposal is not binding. Any transaction would be subject to the execution of definitive transaction documents acceptable to Sillerman and the special committee. Under Sillerman's proposal, his proposed transaction would not be subject to any financing condition.

SFXE closed Tuesday's trading at $3.70. In Wednesday's pre-market trading, the company's shares are up $0.72 or 19.46 percent to $4.42.