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Sillerman asked to prove finance in place for proposed SFX buy back
By Chris Cooke | Published on Monday 3 August 2015
EDM show maker SFX Entertainment has told its founder and CEO Robert Sillerman that he has two weeks to confirm financing for his proposed bid to take the firm back into private ownership.
As previously reported, having floated the EDM festival and Beatport owner in 2013, Sillerman now wants to buy back all the shares he no longer controls. Amid some investor resentment, he finally offered his fellow stock holders $5.25 per share in cash.
An independent committee set up by the SFX board then approved that offer, before inviting other players to make rival bids. Last week it was confirmed that no such offers were forthcoming.
Despite Sillerman’s impending buy-back of his latest entertainment business at an above-market rate, shares in SFX have slipped in the last fortnight, with some questioning whether the founder will be able to raise enough funds to go ahead with the $5.25 per share deal.
Which is why the company’s board has now asked its CEO to prove financing is in place in the next two weeks.
