SFX Entertainment chairman and CEO offers to take company private for $252.5M

StocksAssociated Press

The head of SFX Entertainment wants to take the dance music promoter private in a deal that values the company at about $390 million.

CEO and Chairman Robert Sillerman has offered $4.75 per share, the company said Wednesday, a 43.9 percent premium to Monday's closing price. Sillerman made his offer Tuesday and has asked the board to create a special committee to review his bid, SFX said.

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Sillerman owns a 41.3 percent stake in the company, according to the data firm FactSet, which means he is offering to pay about $252.5 million for the shares he doesn't already own.

Shares of SFX Entertainment Inc. climbed 91 cents, or 24.5 percent, to $4.91 in afternoon trading. The stock closed at $3.30 on Monday and rose 40 cents, or 12 percent, to $3.70 Tuesday.

The New York company went public in October 2013 with an offering of 20 million shares that priced at $13 per share. Shares have fallen 56 percent over the last 12 months.