Cox Enterprises announced late Tuesday (May 19) it had successfully completed its tender offer to take Cox Radio private. The company, which owned a 78 percent equity in Cox Radio, offered $4.80 a share for the remaining 22 percent of the radio company it did not own.
"We are pleased that Cox Radio shareholders supported this transaction and, in so doing, took advantage of an excellent opportunity to obtain liquidity at a 45 percent premium over the closing price the trading day prior to commencement of the offer," said Jimmy W. Hayes, President and Chief Executive Officer of Cox Enterprises. "We believe that private ownership offers advantages that will assist Cox Radio in attaining its business objectives and managing its capital structure as well as ensuring that Cox Radio maintains its best-in-class operations."
Cox Enterprises will own about 91.4 percent of the Cox Radio Shares outstanding. The company, which also owns TV stations, newspapers and cable systems, intends to close the merger as soon as possible.
The fifth largest radio group, Cox Radio, like other radio companies, has been struggling with a sinking economy and soft ad market. The company recently reported first quarter profit was down 69 percent on a net revenue decline of 23 percent.