Proposed $490M sale of SFX Entertainment to CEO fails to draw formal competing offers

MarketsAssociated Press

Electronic dance music promoter SFX Entertainment said Monday that it hasn't received any formal competing offers, putting the $490 million sale of the company to its CEO one step closer to closing.

SFX shares fell 47 cents, or 12 percent, to $3.39 in midday trading.

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In May, SFX announced plans to sell itself to its Chairman and CEO Robert Sillerman for $5.25 per share in cash.

Under the terms of the deal, SFX had the right to seek competing offers until July 24. The two sides valued at deal at $774 million including SFX's debt, its cash and cash equivalents, stock options and other items.

While SFX said it didn't receive a competing offer from any of the entities contacted by its financial adviser, it did receive "several indications of interest" in the potential sale of various parts of its business, which are currently under review.

Unless an alternative deal goes through, the sale to Sillerman is expected to close during the fourth quarter of this year, pending shareholder approval. Once that happens, SFX will become a privately held company.