Cox Enterprises increases offer price to acquire remaining 12% stake in Cox Radio

Thu. April 30, 2009; Posted: 02:16 PM

Apr 30, 2009 (Datamonitor Financial Deals Tracker via COMTEX) -- CXR | Quote | Chart | News | PowerRating -- Update on April 29, 2009:

Cox Enterprises, Inc., a communications, media, and automotive services company, through its subsidiary, Cox Media Group, Inc., has increased its offer price to acquire the remaining 12% stake in Cox Radio, Inc., a radio broadcasting company, from $3.8 per share in cash to $4.8 per share in cash. Both Cox Enterprises and Cox Radio are based in the US.

The price represents a 45.5% premium over the closing price on March 20, 2009 and a 26.3% premium over Cox Enterprises' original proposal of $3.80 per share. The expiration of the tender offer has been extended, and the tender offer will now expire on May 13, 2009.

As on April 28, 2009, approximately 417,300 shares have been tendered pursuant to the offer.

Update on April 20, 2009:

Cox Enterprises, through its subsidiary Cox Media Group, has extended its tender offer to acquire the remaining 12% stake in Cox Radio until May 1, 2009.

Announcement (March 23, 2009):

Cox Enterprises has commenced a tender offer to acquire the remaining 12% stake in Cox Radio for approximately $69.1 million in cash.

The minority shareholders of Cox Radio will receive $3.8 in cash for each share of Cox Radio. The offer price represents a 15.2% premium over the closing price of Cox Radio on March 20, 2009 and a 21.8% premium over the ten-day volume weighted average closing price of Cox Radio.

The transaction will be financed from cash on hand and the existing credit facility of Cox Enterprises. Cox Enterprises currently owns approximately a 78% equity interest in Cox Radio and has approximately a 97% voting interest.

If upon expiration of the tender offer, the shares owned by Cox Enterprises when combined with tendered shares are at least 90% of the outstanding Cox Radio shares, Cox Enterprises will implement a short-form merger at the same per share price paid in the tender offer.

Citigroup, Inc. is acting as financial advisor to Cox Enterprises.

The tender offer is scheduled to expire on April 17, 2009.

Deal Value (US$ Million) 87.28
Deal Type                Acquisition
Sub-Category             Minority Acquisition
Deal Status              Announced: 2009-03-23

Deal Participants

Target (Company)   Cox Radio, Inc.
Acquirer (Company) Cox Enterprises, Inc.

Bid Premium ($ per share) 45.5
% Acquisition             12%

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