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Speedway Motorsports Inc. close to finalizing privatization UPDATE

UPDATE: Speedway Motorsports Inc. and Sonic Financial Corp. are nearing the finish line in an $800 million merger that will make the track operator a private company this week. On Tuesday, publicly held Speedway Motorsports disclosed in filings that owners of 65% of the shares not controlled by Sonic and the Smith family have agreed to terms of $19.75 per share.

Company founder Bruton Smith also owns Sonic Financial and, with other family members, controls 29.4 million of Speedway Motorsports’ 40.8 million shares, or 70%. The value of the tender offer is $226 million for 11.4 million outstanding shares. According to the filing, 7.4 million of those shares, or 65%, have been tendered. The rest will be acquired at the same price of $19.75 per share.

Speedway Motorsports generated revenue of $457 million in 2018. Wells Fargo Securities forecasts $462 million this year with earnings per share of 91 cents. National TV and media-rights contracts with NBC and Fox have become the one consistent area of revenue growth for the track companies.

As of Tuesday afternoon, Speedway Motorsports stock stood at $19.75 per share.

Charlotte Business Journal

ORIGINAL POST: Speedway Motorsports, Inc. announced in April that the Sonic Financial Corp. would acquire all shares of the company and take it private.

The move is separate from NASCAR’s pending purchase of International Speedway Corp.

See the SMI filing here.