Radio station company Cumulus Media agrees to $507.7M buyout offer from private investor group

<p>Radio station owner Cumulus Media Inc. has agreed to a $507.7 million cash buyout offer from a group of investors that includes the company's chief executive.</p><p>The investor group is being led by Chief Executive Lewis Dickey, who will remain in that role once the deal closes, and an affiliate of Merrill Lynch Global Private Equity.</p><p>Under the deal announced Monday, the buyers would pay $11.75 a share, a 40 percent premium over Friday's closing price, for each of the roughly 43.2 million shares of Cumulus stock outstanding.</p><p>The buyers would also assume debt that would boost the total value of the transaction to $1.3 billion, the Atlanta-based company said in a statement.</p><p>The news sent Cumulus shares soaring $2.75, or 32.9 percent, to close at $11.12 after briefly rising to a new 52-week high of $11.74. The stock previously traded between $8.36 and $11.68 over the past year.</p><p>Cumulus said the transaction will be financed through a combination of equity contributed by Dickey, his brother and fellow executive, other members of their family and Merrill Lynch Global Private Equity, and debt financing that has been committed by Merrill Lynch Capital Corp.</p><p>The Dickeys and stockholders affiliated with Banc of America Capital Investors have agreed to vote their shares of Cumulus stock in favor of the deal or any superior proposal approved by the Cumulus board.</p><p>After completing pending acquisitions and divestitures, Cumulus will own or operate 344 radio stations in 67 U.S. markets either directly and through its investment in Cumulus Media Partners. Cumulus had $334 million in revenues last year.</p><p>The deal is subject to shareholder and regulatory approval, and the company can solicit higher bids for 45 days.</p>

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