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SFX sells $10 million in stock, despite Sillerman’s planned share buy-back

By | Published on Friday 19 June 2015


EDM festival maker SFX has sold some stock to Wolverine Flagship Fund Trading Limited and Virtual Point Holdings LLC in a cash deal worth $10 million. Meanwhile another company affiliated to SFX founder and CEO Robert FX Sillerman will reportedly pump $5 million into the business also in return for a stack of shares.

The share sale is interesting in that it comes as Sillerman seeks to buy back the publicly listed company, offering $5.25 per share for all of the stock not currently in his hands (about 62.6% of the firm). According to reports, Wolverine and Virtual Point have paid just $4.34 a share in their purchase this week, meaning that – assuming Sillerman’s buy-back proposal is green lighted by the firm’s shareholders at large – they’ll be able to cash in at $5.25 a share later this year.

Which suggests that the deal is about generating a speedy cash boost for SFX, even though it is thought to have a cash pile over $45 million in addition to a $30 million credit facility. Though Wall Street’s negative reaction to the new arrangement sent the SFX share price down yesterday, as low as $4.27 at one point, making Sillerman’s $5.25 offer seem all the more attractive. The company’s board approved the plan to take the firm back into private ownership last month.