Robert Sillerman Offers Another Deal To Pull SFX Out Of Trouble
SFX Entertainment's long time coming economic downfall has reached new lows, after CEO Robert Sillerman's attempts to bring the company back private fizzled as stock prices continued to fall at astronomic rates. Earlier this month, the company extended the deadline of its firesale of assets in yet another attempt to stop SFX from going under.
Sillerman has proposed another offer to the company's board in a recent letter, offering to buy the company's remaining shares at $3.25 a piece, with an upfront payment of $1.75 per share and a non-binding agreement. He has offered to confirm that he has the cash needed for the deal on hand. In the letter, he states that he is willing to move forward with the deal as quickly as possible.
“I am prepared to move expeditiously towards the negotiation and execution of definitive agreements for my proposed acquisition transaction. No further diligence review or analysis is required.”
However, Sillerman also stated that “this letter does not constitute any binding commitment with respect to the matters reflected herein. I reserve the right to withdraw or modify the proposal in any manner. No legal obligation with respect to any transaction shall arise unless and until the execution of mutually acceptable definitive agreements.”
SFX declined to comment on their openness to the new deal as of yet, after shares in their stock increased by 25% yesterday. However, their current price is only $1.17, which is still below even the upfront payment of $1.75 outlined in Sillerman's proposal.