Indianapolis-based Emmis Communications Corp. (Nasdaq: EMMS) Chief Executive Officer Jeff Smulyan has made a formal offer to buy the company’s outstanding publicly-held shares and take it private. The proposal could include the sale of some assets, including radio stations in New York and Terre Haute.
Smulyan is making the offer through E Acquisition Corp., which he owns. He is also the controlling shareholder of Emmis. His offer of $4.10 per share in cash is about 3.5 percent higher than the stock’s closing price Thursday. The proposal says Smulyan intends to invite "certain other investors, which are expected to include certain other officers and directors of Emmis and a limited number of other accredited investors" to join in the offer.
The company’s board of directors says it has formed a Special Committee to consider the offer. The proposal will require the recommendation of the special committee and the approval of the board of directors before going to shareholders for consideration. Under the voting terms of the "going private" transaction, Smulyan owns about 13 percent of the voting power of shares entitled to vote on that proposal.
Emmis says the process will have no impact on day-to-day operations, and says it will not comment further on the proposal unless or until a definitive agreement is reached.