MNG Enterprises, also known as Digital First Media, says
it has an outside investment firm saying MNG can come up with the financing to
buy Gannett.
MNG, also known as Digital First Media,
announced last week that Oaktree Capital Management, a subsidiary of Oaktree
Capital Group, delivered a letter stating that Oaktree is highly confident in
MNG’s ability to attain a debt financing package not less than $1.725 billion
in connection with MNG’s proposed acquisition of Gannett.
“This financing would be sufficient to
refinance the existing indebtedness of both MNG and Gannett, fully finance the
$12.00 per share cash consideration payable to Gannett’s shareholders, and pay
all related fees, costs and expenses in connection with the transaction,” said
a statement from MNG.
“It’s time for Gannett’s Board of Directors to
stop blocking value creation opportunities for its shareholders and engage with
MNG,” said R. Joseph Fuchs, chairman of the board of MNG Enterprises.
Gannett confirmed receipt of the letter and
issued a statement. “The letter that MNG has procured from Oaktree’s distressed
debt fund, Oaktree Strategic Credit, more than two months after MNG launched
its unsolicited proposal, does not represent a contractual commitment or a
legal obligation, and is highly conditional,” the statement said.
“As a public company, Gannett’s board would
engage with any party that makes a bona fide, credible proposal that
appropriately values the company and is capable of being closed. Gannett has
said in the past that MNG’s proposal fails that test, and the letter from
Oaktree Strategic Credit does not alter the company’s assessment of MNG’s
proposal,” the statement said.
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