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.
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.
The Smith family's deal to privatize Speedway Motorsports Inc. is near completion, and it intends to implement the deal by tomorrow, according to a new SEC filing this AM.
?SMI will stop trading on the stock market, stop reporting earnings and become a fully private company. pic.twitter.com/LeugYUGMqv
— Adam Stern (@A_S12) September 17, 2019
At $19.75 a share and 11,434,595 non-family stockholders, it appears the Smith family could pay approximately $226 million to take SMI private. SMI owns Charlotte, Texas, Vegas, Sonoma, Loudon, Atlanta, Bristol, Kentucky tracks. #nascar
— Bob Pockrass (@bobpockrass) September 17, 2019