Nexstar Broadcasting Group, Inc declared today a proposition to acquire Media General, Inc. for $10.50 per share in real money and an altered proportion of 0.0898 Nexstar shares per Media General share. The proposition, as of now esteemed at $14.50 per Media General share, was submitted today in a letter to the Media General Board. It speaks to a premium of 30% to Media General’s end stock price on September 25.
CEO of Nexstar, Perry Sook said, “The exchange we are proposing will be a transformational occasion for both Nexstar and Media General shareholders and would convey superior, quality to Media General’s shareholders contrasted and Media General’s bids for acquisition of Meredith.
“Our proposition gives a critical premium to Media General’s shareholders, including a money segment about equivalent to Media General’s present share price. Our proposition would likewise empower Nexstar and Media General shareholders to take an interest in the close and long haul upside of an immaculate play broadcasting company with extended group of onlookers achieve, a more enhanced portfolio, and an altogether more grounded financial profile, including generous free income per share, drove by a demonstrated show and advanced media administration group.
Nexstar is as of now developing quickly as an aftereffect of our natural and M&A activities, yet a joined Nexstar/Media General would be shockingly better situated for long haul achievement in a dynamic and merging market and surely better situated to convey shareholder esteem than a consolidated Media General/Meredith.
“Given the convincing strategic and financial estimation of a mix, it is outlandish that Media General’s Board has declined to connect with us and has rather sought after a nonsensical and worth damaging acquisition of Meredith that would at the end of the day uncover Media General shareholders to the low’s dangers edge distributed business. We trust our offer is convincing and gives a quality building way ahead for both Media General and Nexstar shareholders. We anticipate participating in dialog with the financial group in regards to the superior benefits of our proposed exchange.”
BofA Merrill Lynch is going about as financial consultant and Kirkland & Ellis LLP is going about as legitimate direction to Nexstar regarding the proposed exchange.
Media General not long ago said it consented to purchase Meredith MDP, – 5.61% for about $2.4 billion in real money and stock. Counting obligation, the deal, which must be sanction by both companies’ shareholders, was esteemed at $3.1 billion.