Liberty Media Offers To Take Over Rest Of Sirius XM, Make It A Wholly-Owned Subsidiary
January 3, 2014 at 3:07 PM (PT)
LIBERTY MEDIA has proposed a plan to make SIRIUS XM RADIO a wholly-owned subsidiary of LIBERTY. The plan would issue LIBERTY shares, in a new Series C common stock, to all SIRIUS XM shareholders in a ratio of 0.0760 shares of the new LIBERTY stock for each SIRIUS XM share that, based on TODAY's closing prices, values SIRIUS XM at $3.68 per share; LIBERTY Series A and B shareholders would get shares of the new Series C stock in a 2:1 ratio. After the deal is complete, SIRIUS XM shareholders would own about 39% of LIBERTY.
LIBERTY President/CEO GREG MAFFEI said, "Our proposal will allow SIRIUS public shareholders to convert from a non-controlling stake in a subsidiary into a direct equity position in LIBERTY, the parent company. SIRIUS shareholders will continue to participate in SIRIUS' future prospects along with LIBERTY's broader portfolio of businesses and opportunities. We believe the combined company will have better access to capital and all of LIBERTY's shareholders -- both its current shareholders and the SIRIUS shareholders who become LIBERTY shareholders as a result of the proposed transaction -- will enjoy enhanced liquidity as shareholders of a $27 billion market capitalization company."
LIBERTY Chairman JOHN MALONE added, "The proposed transaction is an important step in the growth of both companies. It will enable us to focus our energies on the pursuit of new opportunities across the expanded portfolio of LIBERTY's businesses and to optimize our capital structure to produce the maximum possible returns to all shareholders."