Nexstar to buy Tribune Media for $4.1 billion
Reuters
Published Dec 03, 2018 12:39
Nexstar to buy Tribune Media for $4.1 billion
(Reuters) - Nexstar Media Group Inc (O:NXST) said on Monday it agreed to buy Chicago-based peer Tribune Media Company (N:TRCO) for about $4.1 billion (3.22 billion pounds) in cash, making it the largest regional U.S. TV station operator.
Nexstar said it would pay $46.50 per share, representing a premium of 15.5 percent to Tribune Media's closing price on Friday. Tribune shares rose 10.5 percent to $44.50.
The value of the deal was in line with what Reuters reported on Sunday, citing people familiar with the matter.
Including debt, the deal is worth $6.4 billion.
The acquisition comes just three months after Sinclair Broadcast Group Inc's (O:SBGI) $3.9 billion deal to buy Tribune collapsed over regulatory hurdles.
Irving, Texas-based Nexstar said the transaction was subject to approvals by Tribune's shareholders and regulators including the Federal Communications Commission.
The company outbid private equity firm Apollo Global Management LLC (N:APO) with an all-cash offer that values Tribune at around $46.50 per share, three sources had told Reuters.
The deal, expected to close late in the third quarter of 2019, will add about $160 million in the first year to Nexstar's earnings, the companies said.
Nexstar said it had received committed financing for the transaction from BofA Merrill Lynch, Credit Suisse (SIX:CSGN) and Deutsche Bank (DE:DBKGn).
BofA Merrill Lynch the financial adviser and Kirkland & Ellis LLP and Wiley Rein LLP the legal counsel to Nexstar.
Moelis & Co and Guggenheim Securities are financial advisers to Tribune Media and Debevoise & Plimpton LLP and Covington & Burling LLP are its legal counsel.
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Written By: Reuters
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