Emmis Moves Forward With Buyback Effort

0

On October 28RBR+TVBR first reported that the company founded and led by Jeff Smulyan had earmarked as much as $5.2 million to invest in a long-awaited stock repurchase initiative — one intended to take up to two million Class A Emmis Communications shares out of public hands.


The stock buyback effort fell short of that goal, the company revealed on Monday.

Emmis’ cash tender offer expired at 5pm Eastern on Friday (11/19). And, based on the final count by tender offer depositary Broadridge Inc., a total of 1,027,494 shares of Emmis’ Class A common stock were properly tendered and not withdrawn.

What does this mean? With Class A common stock set by Emmis at a purchase price of $2.60 per share, it will move ahead with the purchase all of the shares tendered for an aggregate price of approximately $2.7 million — excluding fees and expenses relating to the tender offer.

he shares to be purchased represent approximately 8.5% of the issued and outstanding shares of Emmis’ Class A common stock and 7.5% of Emmis’ total issued and outstanding equity, which includes the issued and outstanding shares of Emmis’ Class B common stock.

The shares purchased in the tender offer will be cancelled by Emmis. And, after giving effect to the purchase and cancellation of the shares, Emmis will have 12,601,659 shares of common stock issued and outstanding consisting of 11,105,959 shares of its Class A common stock and 1,495,700 shares of its Class B common stock.

However, Emmis intended to cancel a higher number of shares in the tender offer.

LEAVE A REPLY

Please enter your comment!
Please enter your name here