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Sillerman confirms he is working on SFX buy-back Plan B

By | Published on Tuesday 18 August 2015


SFX founder and boss man Robert Sillerman has confirmed that he will have a second go at taking his company back into private ownership, keeping most of the EDM powerhouse as it currently stands together as one business.

As previously reported, Sillerman admitted last week that he couldn’t raise the money to buy back all the shares in his company not currently in his control at $5.25 a piece, the price he had offered earlier in the year. Not least because shares in SFX have been slumping of late, from $3.70 at the start of the year to $1.33 as we speak. All of which made the $5.25 offer both very generous and very unrealistic.

A special committee of independent directors set up by SFX to consider its CEO’s proposals has now said it will accept any credible offers to buy the company, or any of its assets, up until at least 2 Oct. It’s thought third party bids are more likely to be for parts of the SFX business, rather than the company outright.

Sillerman, however, who also has until the 2 Oct to come forward with new proposals, will again form a plan to keep SFX together and take it back into private ownership with him at the helm. He has told the investment community he is now working with his financial advisors on that new plan, including considering forming one or another strategic partnerships to facilitate any buy-back. It remains to be seen what that plan looks like, and how other SFX shareholders respond.