Emmis Communications Corp
* Emmis Communications receives proposal to acquire the corporation’s outstanding public shares
* $4.10 cash per share offered for Emmis Communications Corporation’s public shares
* Proposal does not include a financing condition
* In response to proposal, board announced that it has formed a special committee of disinterested directors to consider proposal
* Smulyan and other directors of Emmis who will join purchaser will not participate in evaluation of proposal
* E-Acquisition Corp, owned by Jeffrey Smulyan, CEO and controlling shareholder of Emmis has made a non-binding proposal for Emmis
* Emmis expects this process to have no impact on day-to-day operations.
* Proposal states E-Acquisition Corp has obtained committed acquisition facility from an affiliate of Falcon Investment Advisors, Llc.
* Under terms of Emmis’ articles of incorporation, potential transaction will be a “going private” transaction
* Proposal states that purchaser to invite other investors, which will include certain other officers and directors of Emmis
* Proposal also states that transaction will be subject to approval by Emmis’ shareholders
* Offer indicates that if deal is consummated, buyer intends to reduce Emmis’ debt by selling certain non-core assets of business
* Board has authorized Emmis to explore strategic alternatives for publishing division and radio stations in Terre Haute, Indiana Source text for Eikon.
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Source: Reuters.com