Cox Enterprises Completes Tender Offer For Cox Radio -- Now Private
May 19, 2009 at 5:55 PM (PT)
COX ENTERPRISES, INC., through its wholly-owned subsidiary COX MEDIA GROUP, INC., has completed its tender offer to acquire all of the outstanding shares of Class A common stock of COX RADIO, INC. it did not already own, taking the radio company private.
The offer expired at 5p ET TODAY and about 10,327,500 shares of Cox Radio Class A common stock were tendered, including about 917,500 shares subject to guaranteed deliveries and approximately 327,000 shares tendered by affiliates, representing 59.4% of COX RADIO's publicly held Class A shares. With the 78% equity interest already owned by COX ENTERPRISES, COX ENTERPRISES will own about 72,652,000 shares or 91.4% of outstanding COX RADIO shares. COX ENTERPRISES is paying $4.80 per share.
"We are pleased that COX RADIO shareholders supported this transaction and, in so doing, took advantage of an excellent opportunity to obtain liquidity at a 45% premium over the closing price the trading day prior to commencement of the offer," said COX ENTERPRISES Pres./CEO JIMMY HAYES. "We believe that private ownership offers advantages that will assist COX RADIO in attaining its business objectives and managing its capital structure as well as ensuring that COX RADIO maintains its best-in-class operations."
COX RADIO will next implement a short-form merger under DELAWARE law in which COX RADIO will become a wholly-owned subsidiary of COX RADIO.