The decision of whether or not to approve a privatization plan offered August 18 by Emmis Communications Chairman/CEO Jeff Smulyan will now come following the company’s fiscal Q2 conference call with investors next week.
In a letter delivered to a special committee of independent and disinterested directors formed by Emmis’ board of directors, E Acquisition Corp. — a corporation created by Smulyan for the privatization offer — extended the deadline for responding to his proposal from Sept. 30 until Friday, Oct. 7.
Smulyan tells RBR + TVBR, “It’s just a matter of needing extra time.”
The original deadline for the proposal, which calls for Emmis to sell its Terre Haute, Ind. stations and WLIB-AM 119 in New York while exploring “strategic alternatives” for its magazine group (minus Indianapolis Monthly), was Sept. 16.
It was then extended until September 30, to give the special committee more time to consider the proposal, in which E Acquisition would acquire all outstanding Class A shares at a cash purchase price of $4.10 per share.
At the closing bell Friday, shares of EMMS sat at $4.05.
The second extension means Emmis could very well make an announcement about its future during its fiscal Q2 conference call with investors set for Thursday, Oct. 6 at 9am Eastern.
Smulyan and EVP/CFO/Treasurer Ryan Hornaday will host the call.
After opening comments, Smulyan and Hornaday will respond to questions submitted via e-mail.