Cox Radio is trying to go private. It confirmed this week that Cox Media Group Inc., a wholly-owned subsidiary of Cox Enterprises Inc., has begun a cash tender offer for the outstanding shares of Cox Radio Class A common stock not owned by Cox Media Group for $3.80 per share, or a total payment of $69.1 million.
Cox Radio expects its board to appoint a committee of independent directors to review and consider the tender offer and soon make a formal statement to Cox Radio shareholders. The offer is good until April 17.
According to analyst Marci Ryvicker at Wachovia, Cox Enterprises owns approximately a 78% equity interest in Cox Radio and has approximately a 97% voting interest. “If upon expiration of the tender offer Cox Enterprises owns 90% of Cox Radio’s equity, Cox Radio would become a wholly-owned subsidiary of Cox Enterprises,” she wrote in a client note.
Day-to-day operations will continue as normal, said the company, which owns, operates or provides sales and marketing services to 86 stations in 19 markets. This radio portfolio includes 71 FMs and 15 AMs.
