In an 8-K filing with the Securities and Exchange Commission on Friday (Sept. 16), Emmis Communications Chairman of the Board and CEO Jeff Smulyan extended by 14 days the deadline for a special committee created by Emmis’ board to review and evaluate his privatization proposal.
Smulyan confirmed the filing and his decision to extend the offer when contacted by RBR + TVBR. He explained that the special committee needed additional time.
The privatization offer came August 18, and the original deadline was Sept. 16.
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), will officially expire Sept. 30 without any further action from either party, the filing states.
Emmis shares finished the week at $4.03, down 7 cents.
Smulyan’s privatization effort calls for the purchase of all outstanding EMMS shares at $4.10.
Should Smulyan be successful, Moody’s Investors Service VP and Senior Credit Officer Scott Van den Bosch warns that the company’s debt could increase by $10 million.
Meanwhile, there’s no “mad dash to privatization” expected from Smulyan’s offer to take Emmis private, says Kozacko Media Services president Dick Kozacko.