The fearless leader of heaving dance music conglomerate SFX Entertainment, Robert F.X. Sillerman is making one last ditch effort to try and save his company. In a new letter sent to the Board of Directors, the Chairman and CEO has extended a new offer to take the company private.
In the new letter (via Forbes), Sillerman is offers in a non-binding agreement, $3.25 per share, while involves an upfront payment of $1.75 per share, up to $50 million in pro-rata payments for loans he has made to SFX and then another $1 per share if he is able to sell the company within five years.
The deal would need to be approved by SFX's appointed special committee that has overseen the two failed go-shop periods this year, the board of directors and the majority of shareholders.
"This letter does not constitute any binding commitment with respect to the matters reflected herein. I reserve the right to withdraw or modify the proposal in any manner. No legal obligation with respect to any transaction shall arise unless and until the execution of mutually acceptable definitive agreements," writes Sillerman in the letter.
The offer comes as the deadline for second go-shop period that had been oft-extended came and went without an apparent good offer for the company or its parts. Sillerman is now trying to step in with his own offer to take the company - his goal since the spring.
The current offer of $1.75 per share, with the option of moving up to $3.25 on certain conditions could look good for certain investors who just want to wash their hands of all SFX stock that bottomed out at $.40 cents in the past month, but is currently sitting at $1.10.
