Integrated media company Fisher Communications Inc. (FSCI), Thursday said it has agreed to be taken over by Sinclair Broadcast Group Inc. (SBGI) in a deal valued at $373.3 million. Shares of Fisher and Sinclair rose five percent on the Nasdaq following the news.
As per the deal, Sinclair will pay Fisher shareholders $41.00 in cash for each share held. The offer price represents a 44 percent premium on Fisher's closing price on January 9, a day prior to Fisher's announcement of exploring alternatives.
"After conducting our review of potential strategic alternatives, the Board concluded this all-cash transaction was the best path to maximizing value for shareholders," said Paul Bible, Chairman of Fisher's Board of Directors.
Seattle, Washington-based Fisher owns 20 television stations in eight markets and three radio stations.
"We are excited to acquire Fisher and expand our coverage westward, especially in the two key markets of Seattle and Portland," commented David Smith, President and CEO of Sinclair.
The deal is subject to approval from the Federal Communications Commission, antitrust clearance, the affirmative vote of two-thirds of Fisher's outstanding shares and other customary conditions.
Sinclair expects the deal to close during the third quarter. The acquisition will be funded with cash on hand, a bank loan and/or by accessing the capital markets.
FSCI is currently trading at $40.90, up $1.98 or 5.09%, on a volume of 1.8 million shares.
SBGI is currently trading at $23.10, up $1.27 or 5.82% on a volume of 1.7 million shares.
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