Tegna Confirms Acquisition Offers | Business Virginia
Media reports: Apollo Global Management, mogul Byron Allen offering $ 8 billion +
September 22, 2021
Tysons-based broadcast and digital media company Tegna Inc. has received more than $ 8 billion in takeover bids from Apollo Global Management Inc. and media mogul Byron Allen, according to the media. The news comes more than a year after previous purchase proposals failed in March 2020 on the cusp of the coronavirus pandemic.
Bloomberg reported Allen, owner of The Weather Channel and CEO of Los Angeles-based Allen Media Group, has partnered with Ares Management Corp. to offer Tegna $ 23 per share. New York-based private equity firm Apollo Global and New York-based hedge fund Standard General, one of Tegna’s largest shareholders, have made a cash offer of $ 22 per share.
Tegna owns 64 TV stations in 51 US markets and reaches about 39% of all TV homes nationwide. It was formed in 2015 as a publicly traded company after McLean-based Gannett Co. Inc., the country’s largest newspaper publisher, separated its broadcast and digital media divisions.
“In accordance with its fiduciary duty to Tegna shareholders, the board of directors will carefully review and assess these proposals,” Tegna said in a statement posted on its website Tuesday. Tegna did not specify which companies have made takeover bids or the proposed financial terms.
In September 2020, Tegna Inc. announced that it had raised $ 550 million in debt financing, which would be used to pay off outstanding debt. The company said it would use the net proceeds to repay the full total principal amount of $ 350 million of its 4.875% senior bonds due 2021 and $ 188 million of the total principal amount of its bonds. 5.5% senior bonds due 2024. Tegna also plans to use the funding for the redemption premium on its 5.5% senior bonds due 2024, according to a company statement. Earlier this month, however, Tegna announced that its $ 300 million share buyback program is expected to be completed by the end of 2022, a year ahead of schedule.
In March 2020, the Fortune 1000 company announced that two offers to acquire the company had failed. Tegna had received four unsolicited takeover bids, three of which are said to be worth around $ 8.5 billion each. The offers included a joint proposal from investment firm The Najafi Cos. and the religious broadcaster Trinity Broadcasting Network; and an offer from Allen. Other bidders included private equity firm Apollo Global Management Inc. and Gray Television Inc.
Tegna earned $ 2.9 billion in 2020. The company was embroiled in a proxy battle earlier this year with Standard General LP, which argued that Tegna had not seriously considered buying the bids from it. last year.