Playboy Enterprises, Inc. (NYSE: PLA) has been in talks to go private for some time. It appears to be happening. The company just announced this morning that Icon Acquisition Holdings, L.P., a limited partnership controlled by Hugh M. Hefner, will acquire the public shares of Playboy at a price of $6.15 per share.
The deal is a 56% premium to back when a going private deal was first announced in July 2010 and it still represents a 18.3% premium over the closing price on Friday.
Icon Acquisition Holdings L.P., has obtained equity commitments from Rizvi Traverse Management LLC and a debt commitment for the transaction from affiliates of Jefferies & Company, Inc.
The board of directors has approved the transaction after forming a special committee to evaluate the deal. Its decision was unanimous in favor of it.
Playboy CEO Scott Flanders will remain with the company in his current position and maintain a significant equity investment in Playboy.
After years of declining sales, maybe the Playboy empire will appear to be better off without having shareholders.
Playboy’s 52-week trading range is $3.04 to $6.10.
JON C. OGG
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
