Saga Communications rejects unsolicited takeover bid
Communication Saga (NASDAQ:SGA) said on Wednesday it had declined a non-binding conditional sign of interest is not required to acquire the company under the two potential transaction structures.
The first structure is a cash buyback offer at $30 to $33 a share, and the second structure is a merger where Saga (SGA) shareholders will receive $12.47 per share in cash and will own 83.1% of the shares of the merged company, which will then assume the contractor’s existing debt.
by Saga (SGA) the board determined that the contractor – a smaller broadcaster – had not provided sufficient evidence of its ability to obtain the necessary financing
The Board of Directors will continue to evaluate all opportunities to enhance shareholder value, including through the adoption of a new changed dividend policy as well as the acquisition of broadcast assets.
story (SGA) also said Warren Lada, who served as interim CEO until December 6, has been elected chairman of the board.
Lada will replace Gary Stevens, who has served as interim chairman since August 24. Stevens will continue to serve as a board member.
Christopher Forgy, Saga’s (SGA) President and CEOhas been appointed as director.
story (SGA) announced a new variable dividend policy whereby the company will announce an additional dividend in the second quarter of each year equal to 70% of the previous year’s annual free cash flow.
The company also declares a quarterly dividend of $0.25 and $2 special dividend.