- Standard General and Apollo Global Management Inc (NYSE:APO) agreed to acquire television broadcaster Tegna Inc (NYSE:TGNA).
- They will acquire Tegna in a transaction valued at $24 a share.
- The purchase price implied a premium of 39% on the unaffected closing share price on September 14, 2021, the last full trading day before media speculation about a potential sale of TEGNA, and a premium of 11% to Tegna's all-time high closing price since separation from the Gannett publishing business in 2015.
- Related Content: Why Are Tegna Shares Trading Higher?
- The transaction has an equity value of $5.4 billion and an enterprise value of $8.6 billion, including the assumption of debt.
- In a nod to potential antitrust scrutiny of the deal, the buyers have agreed to pay an additional amount per share for each month that the regulatory review takes after an initial period.
- The price increases from $0.05 per share after the first nine months to $0.125 per share in the 15th month and beyond.
- Apollo would receive preferred shares in Tegna and will not have voting rights.
- Standard Media CEO Deb McDermott will become CEO and founding Partner of Standard General Soo Kim will serve as Chairman of a new Board after the transaction closes.
- Price Action: TGNA shares traded higher by 7.28% at $22.48 in the market on the last check Tuesday.
