National Amusements Inc. (NAI) has nailed down details of its sales of shares of both CBS Corporation and Viacom to raise cash and pay off its own debt. The Viacom Class B shares were priced at $28.25 per share, down 66 cents from Wednesday’s closing price, and the CBS Class B shares at $12.00, down 52 cents from the Wednesday close.
NAI is selling 26,040,909 shares of CBS, for a total of $312,490,908. An additional 2,604,091 shares will be available to the underwriters to cover overallotments.
NAI is selling 19,382,945 shares of Viacom, for a total of $547,568,196.25. An additional 1,938,295 shares will be available to the underwriters to cover overallotments.
That’s a total sale of $860,059,104.25, of which NAI expects to receive $827.8 million after commissions, or as much as $910.6 million if the full overallotments are tapped.
After giving effect to the offerings (and assuming full exercise of the underwriters’ overallotment options), NAI will own 79.07% of the voting shares and 6.05% of the equity of CBS, and 79.87% of the voting shares and 6.89% of the equity of Viacom.
The Los Angeles Times has filled in some details on how NAI will raise the remaining $400 million-plus in paying off its entire debt load. The Times says NAI is selling 35 of its 79 US theaters, mostly those in the Midwest and south of New York, including the Washington, DC area and the company’s lone West Coast multiplex in LA. The company will hold onto 44 core US theaters, according to the report. NAI had already said it would keep its theater chains in the UK and Brazil.
RBR-TVBR observation: Isn’t that absurd? Sumner Redstone’s NAI will own less than 7% of the equity of both CBS and Viacom, yet he will maintain dictatorial control over the companies. The public shareholders who will own over 93% of each company have no say in how they are run.