B. Riley Financial Receives Unsolicited Proposal to Be Taken Private
B. Riley Financial (Nasdaq: RILY) has received an unsolicited proposal from its founder, chairman, and co-CEO, Bryant Riley, to take the company private. The offer proposes to acquire outstanding shares not owned by Riley at $7.00 per share. The transaction would be financed with debt and possibly third-party equity, subject to 'majority of the minority' stockholder approval and other conditions, but not a financing condition.
The company's Board of Directors plans to establish a Special Committee of independent directors to evaluate the proposal. However, the Board cautions that it has not yet had the opportunity to thoroughly review the offer, and there is no assurance that a definitive agreement will be reached or that any transaction will be approved or completed.
B. Riley Financial (Nasdaq: RILY) ha ricevuto una proposta non richiesta dal suo fondatore, presidente e co-CEO, Bryant Riley, per rendere l'azienda privata. L'offerta prevede l'acquisto delle azioni in circolazione non possedute da Riley a 7,00 dollari per azione. La transazione sarebbe finanziata con debito e possibilmente capitale di terzi, soggetta all'approvazione dei soci 'di maggioranza del minoritario' e ad altre condizioni, ma non a una condizione di finanziamento.
Il Consiglio di Amministrazione dell'azienda prevede di istituire un Comitato Speciale di amministratori indipendenti per valutare la proposta. Tuttavia, il Consiglio avverte che non ha ancora avuto l'opportunità di esaminare a fondo l'offerta e non c'è alcuna garanzia che venga raggiunto un accordo definitivo o che qualsiasi transazione venga approvata o completata.
B. Riley Financial (Nasdaq: RILY) ha recibido una propuesta no solicitada de su fundador, presidente y co-CEO, Bryant Riley, para privatizar la empresa. La oferta propone adquirir las acciones en circulación que no posee Riley a 7.00 dólares por acción. La transacción sería financiada con deuda y posiblemente con capital de terceros, sujeta a la aprobación de los accionistas 'de mayoría del minoritario' y otras condiciones, pero no a una condición de financiamiento.
La Junta Directiva de la empresa planea establecer un Comité Especial de directores independientes para evaluar la propuesta. Sin embargo, la Junta advierte que aún no ha tenido la oportunidad de revisar a fondo la oferta, y no hay garantía de que se alcance un acuerdo definitivo o de que alguna transacción sea aprobada o completada.
B. Riley Financial (Nasdaq: RILY)는 그 창립자이자 회장, 공동 CEO인 브라이언트 라일리로부터 회사를 비상장 기업으로 전환하자는 비공식 제안을 받았습니다. 이 제안은 라일리가 소유하지 않은 발행 주식을 주당 7.00달러에 인수하자는 내용입니다. 거래는 부채로 자금 조달되며, 경우에 따라 제3자의 자본이 포함될 수 있으며, '소수 주주의 다수'의 주주 승인과 기타 조건에 따라야 하지만 자금 조달 조건은 아닙니다.
회사의 이사회는 제안을 평가하기 위해 독립 이사들로 구성된 특별위원회를 구성할 계획입니다. 그러나 이사회는 아직 제안을 면밀히 검토할 기회를 갖지 못했으며, 최종 합의에 도달하거나 거래가 승인되거나 완료될 것이라는 보장은 없다고 경고하고 있습니다.
B. Riley Financial (Nasdaq: RILY) a reçu une proposition non sollicitée de son fondateur, président et co-CEO, Bryant Riley, pour privatiser l'entreprise. L'offre propose d'acquérir les actions en circulation non détenues par Riley au prix de 7,00 dollars par action. La transaction serait financée par de la dette et éventuellement par des capitaux tiers, sous réserve de l'approbation des actionnaires 'de la majorité des minoritaires' et d'autres conditions, mais pas d'une condition de financement.
Le Conseil d'Administration de l'entreprise prévoit de créer un Comité Spécial composé de directeurs indépendants pour évaluer la proposition. Cependant, le Conseil avertit qu'il n'a pas encore eu l'occasion d'examiner en profondeur l'offre et qu'il n'y a aucune garantie qu'un accord définitif sera atteint ou qu'une transaction sera approuvée ou finalisée.
B. Riley Financial (Nasdaq: RILY) hat ein unverlangtes Angebot von seinem Gründer, Vorsitzenden und Co-CEO, Bryant Riley, erhalten, um das Unternehmen privat zu machen. Das Angebot sieht vor, die ausstehenden Aktien, die Riley nicht besitzt, zu einem Preis von 7,00 Dollar pro Aktie zu erwerben. Die Transaktion würde durch Schulden und möglicherweise durch Eigenkapital Dritter finanziert, abhängig von der Zustimmung der 'Mehrheit der Minderheitsaktionäre' und anderen Bedingungen, jedoch nicht von einer Finanzierungsbedingung.
Der Vorstand des Unternehmens plant die Einrichtung eines Besonderen Ausschusses aus unabhängigen Direktoren zur Bewertung des Angebots. Der Vorstand warnt jedoch, dass er noch nicht die Gelegenheit hatte, das Angebot gründlich zu prüfen, und es gibt keine Gewissheit, dass eine endgültige Vereinbarung erzielt oder dass eine Transaktion genehmigt oder abgeschlossen wird.
- Potential for shareholders to receive a premium on their shares
- Transaction not subject to financing condition, reducing uncertainty
- Proposed price of $7.00 per share may undervalue the company
- Potential conflicts of interest with founder-led buyout
- Increased debt load to finance the transaction could impact company's financial stability
Insights
This unsolicited proposal to take B. Riley Financial private at
The proposed "majority of the minority" stockholder approval requirement adds a layer of protection for minority shareholders. The Board's decision to form a Special Committee of independent directors is a standard practice to ensure fairness. Investors should closely monitor for any competing bids or revised offers, as these could potentially drive the price higher.
The legal implications of this proposal are significant. The formation of a Special Committee is important to mitigate potential conflicts of interest, given that the offer comes from the company's chairman. This committee will be tasked with evaluating the fairness of the offer and negotiating on behalf of minority shareholders.
The "majority of the minority" approval requirement is a key protective measure for non-affiliated shareholders. However, investors should be aware that going private transactions can sometimes face shareholder litigation, especially if there are concerns about the fairness of the offer price or the process.
The Board's cautionary statement about not having reviewed the proposal yet is a standard legal disclaimer to manage expectations and avoid potential securities law violations. Shareholders should expect a more detailed response once the Special Committee has conducted its evaluation.
This privatization proposal could significantly impact B. Riley Financial's market position. As a private company, B. Riley would have more flexibility in its strategic decisions without the scrutiny and reporting requirements of a public company. This could potentially lead to more aggressive growth strategies or restructuring efforts.
However, the proposed
Investors should consider the potential loss of liquidity if the deal goes through, as well as the possibility of missing out on future upside if the company's performance improves significantly after going private. The market's reaction to this news will be telling, potentially influencing the final outcome of this proposal.
According to the proposal, Mr. Riley intends to finance the transaction with debt and, potentially, equity from third party capital providers. The proposed transaction would be subject to the "majority of the minority" stockholder approval, and other customary conditions. The proposed transaction would not be subject to a financing condition.
The Company's Board of Directors expects to establish a Special Committee consisting of independent directors with its own advisors to carefully evaluate the proposal and determine the appropriate course of action and process. There is no assurance that the proposal will result in a transaction.
The Board cautions the Company's shareholders and others considering trading the Company's securities that the Board has just received the Proposal and has not had an opportunity to carefully review or evaluate the Proposal and its terms, or make any decision with respect to the Company's response to the Proposal. There can be no assurance that any definitive offer will be received, that any definitive agreement will be executed relating to the Proposal or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.
About B. Riley Financial
B. Riley Financial is a diversified financial services platform that delivers tailored solutions to meet the strategic, operational, and capital needs of its clients and partners. B. Riley leverages cross-platform expertise to provide clients with full service, collaborative solutions at every stage of the business life cycle. Through its affiliated subsidiaries, B. Riley provides end-to-end financial services across investment banking, institutional brokerage, private wealth and investment management, financial consulting, corporate restructuring, operations management, risk and compliance, due diligence, forensic accounting, litigation support, appraisal and valuation, auction, and liquidation services. B. Riley opportunistically invests to benefit its shareholders, and certain affiliates originate and underwrite senior secured loans for asset-rich companies. B. Riley refers to B. Riley Financial, Inc. and/or one or more of its subsidiaries or affiliates. For more information, please visit www.brileyfin.com.
Contacts
Investors
ir@brileyfin.com
Media
press@briley.com
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SOURCE B. Riley Financial
FAQ
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