Viacom completes $602 million secondary offering

Fri. October 23, 2009; Posted: 02:21 PM

Oct 23, 2009 (Datamonitor Financial Deals Tracker via COMTEX) -- VIA.B | Quote | Chart | News | PowerRating -- Viacom, Inc., a US-based entertainment content company, has announced that National Amusements, Inc. has completed a $602 million secondary offering of approximately 21.3 million shares of Viacom's Class B common stock.

Announcement (October 14, 2009):

Viacom has announced the pricing of an underwritten public offering of 19,382,945 shares of Viacom's Class B common stock offered by National Amusements, Inc. (NAI). The offering was priced at $28.25 per share, resulting in gross offering proceeds to NAI of approximately $547.6 million.

The offering is expected to close on or about October 20, 2009.

Earlier, on the same day, NAI, through its wholly-owned subsidiary NAIRI, Inc., has agreed sell Class B common stock of Viacom in an underwritten public offer for approximately $600 million. All the three companies are based in the US.

NAI is a owner and operator of motion picture theaters and movie screens.

NAI, through NAIRI, holds approximately 46.8 million shares of Viacom voting Class A common stock, or approximately 81.6% of the outstanding shares of Class A common stock, and approximately 16.3 million shares of Viacom non-voting Class B common stock, or approximately 3% of the outstanding shares of Class B common stock.

The shares of Viacom's Class B common stock proposed to be sold include all of the shares of Class B common stock that NAI currently owns, and additional shares of Viacom's Class B common stock to be received upon the conversion of shares of Class A common stock into Class B common stock. Viacom's Class A common stock is convertible into Class B common stock on a one for one basis.

Citigroup, Inc. is acting as book-runner, while J.P. Morgan Plc is acting as underwriter for the offering. Skadden, Arps, Slate, Meagher & Flom LLP is representing Viacom on the transaction.

Deal Value (US$ Million) 602
Deal Type                IPO
Sub-Category             Secondary Offering
Deal Status              Completed: 2009-10-20

Deal Participants

Target (Company) Viacom, Inc.
Vendor (Company) NAIRI, Inc.

Offer Price ($ per share) 28.25
No. Shares Issued         21300000

For full details on Viacom Inc Class B (VIA.B) click here. Viacom Inc Class B (VIA.B) has Short Term PowerRatings of 5. Details on Viacom Inc Class B (VIA.B) Short Term PowerRatings is available at This Link.

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