Saga Communications has announced it has rejected an unsolicited takeover offer.
The company’s board of directors says it “received and ultimately rejected a confidential, unsolicited, and non-binding conditional indication of interest to acquire the company under two potential transaction structures.
While not naming who offered to purchase the company, a report from Inside Radio claims it was Connoisseur Media CEO Jeff Warshaw. Warshaw unsuccessfully attempted to purchase Cumulus Media twice earlier this year.
The first offer, according to Saga, was a “cash buyout in the range of $30-$33 per share for all outstanding shares of Saga common stock”. The second offer was a merger with Connoisseur Media that would have paid Saga shareholders $12.47 per share to own 83.1% of the new company.
The Saga board of directors says it “did not believe this indication of interest was acceptable given the board’s view of the fundamental value of the company and its assets, the assumptions and significant financial contingencies underlying the offer, the longstanding mission of the company to develop and operate broadcast properties, and the board’s confidence that the company can ultimately create more value for shareholders in comparison to the highly conditional offer.
In conjunction with the company’s consultants and legal and financial advisors, the board will continue to formally review and evaluate all opportunities to enhance shareholder value, including through the new variable dividend policy as well as future acquisitions of additional broadcast properties.”
