Media General Inc.’s stock
rose 2% in premarket trade Wednesday, after the local media company agreed to be acquired by Nexstar Broadcasting Group Inc.
in a deal valued at $4.6 billion. Under terms of the deal, Media General shareholders will receive $10.55 in cash and 0.1249 Nexstar shares for each Media General share they own. Based on Tuesday’s closing prices, the deal values Media General’s stock at $16.69, which is 3.5% above Tuesday’s closing price of $16.13. Nexstar said it expects the deal, which the companies anticipate will be completed late in the third quarter to early in the fourth quarter, to boost free cash flow per share by about 34% to $10.50 for the 2015 to 2016 period. The deal follows the termination of the proposed merger between Media General and Meredith Corp.
which means Meredith Corp. will receive a deal-termination fee of $60 million. Shares of Nexstar and Meredith were still inactive ahead of Wednesday’s open.
View more information: https://www.marketwatch.com/story/media-generals-stock-jumps-after-buyout-deal-with-nexstar-broadcasting-2016-01-27