SFX Shakes Things Up at Executive Level
Sillerman also said that he would support the board of the EDM player if it decided to "explore alternative transactions involving a sale of the company." SFX owns the operators of such dance music festivals as Tomorrowland.
"I have put forward a proposal that offers substantial value and flexibility to all shareholders," said Sillerman. "Given the inherent risks in our business, my offer guarantees a substantial premium to current price. Those shareholders who are interested in remaining as investors in the company alongside me will have the ability to elect to keep all or part of their shares."
Sillerman has requested that the board appoint a special committee of independent directors to consider his proposal and make a recommendation to the full board. He said the proposed transaction would be subject to a condition requiring approval by holders of a majority of the shares of the company's common stock not owned by Sillerman or his affiliates.
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Mr. Sillerman said he also "recognizes the board's fiduciary duties in the context of his proposal and understands that the board or the special committee may decide to explore alternative transactions involving a sale of the company." Sillerman has also ndicated that, if the board or the special committee decides to explore alternative transactions, he would "be prepared to assist in those efforts and, as a stockholder, would be prepared to support an alternative sale transaction that provides compelling value to the company's stockholders."
SFX went public in Oct. 2013. The company has been acquiring EDM festival operators and other music assets.
Sillerman has served as CEO and executive chairman of the company since its creation. He was previously executive chairman of the original SFX, which was sold to the former Clear Channel 2000. That company is now known as Live Nation.
This article was first published by The Hollywood Reporter.