Google
The Web This Blog

Thursday, November 02, 2006

Penton Deal Done 

Penton's board has approved "a definitive agreement" whereby Prism Business Media Holdings will acquire 100% of the capital stock of the company for $194,200,000 in cash, and an assumption or repayment of Penton's debt that values the deal at $530 million.

That's a terrific price for the company, provided the deal closes as planned.

Here's an excerpt from Penton CEO David Nussbaum's email about the deal:

To be clear about the coming days, the merger agreement is only one step in the process. We will file an 8-K and issue a press release today announcing to the public markets that our board has approved this agreement. Over the coming weeks, the company will file a proxy statement with the SEC and hold a stockholders meeting for the stockholders to vote on this deal. If the stockholders vote to approve the merger, we expect the closing of the transaction to occur shortly after the meeting.

According to a commenter to my last post, this kind of price should value the common stock north of 83 cents, so expect a runup today.

I'll also look forward to details of the merger, and who will play what role, in the coming days. I'm sure the gang at Folio: are all over this.

I'll also be interested in how the debt load of Penton will be retired or reallocated. As I've said before, it's a fine company with fine people and management, and just too much debt. Will a Wasserstein-led financial team be able to eliminate that problem (or at least reduce it)? I hope so.

Comments
|

This page is powered by Blogger. Isn't yours?