Cumulus Media says yes, it wants Citadel, even though Citadel has said no.
Cumulus Media confirmed that it recently offered to buy the equity of Citadel for $31 per share, for a deal valued at $2.1 billion.
“The merger would have allowed the Citadel shareholders to elect to receive cash or Cumulus stock, with a total of up to $1 billion of cash to be paid, representing about 71% of the consideration to Citadel shareholders,” it said in a summary.
It says Citadel’s board declined the offer on Dec. 6 but that on Dec. 16, “Cumulus delivered a letter to Citadel’s board of directors reiterating its offer and its desire to reach agreement on a transaction that would deliver superior value and substantial liquidity to Citadel’s shareholders.”
It quoted Cumulus Chairman & CEO Lew Dickey saying, “This offer continues to represent a superior alternative in value, liquidity and potential growth for the former secured creditors of Citadel who, post-bankruptcy, are now the owners of the company.”
The letter from Cumulus told Citadel, “We do not understand why you have been unwilling to engage with us to explore such a transaction and to consider its benefits to Citadel and its shareholders.”