Dover Motorsports (NYSE: DVD) was recently acquired by a leading sponsor, promoter, and marketer of motorsports entertainment. In addition, Dover recently announced that it would be executing a definitive agreement where Speedway will acquire it for $3.61 a share.
Speedway’s Chief Executive Officer and President, Marcus Smith, and Dover’s Chief Executive Officer, Dennis McGlynn, made the announcement today. This news drove Dover Motorsports shares up by 60%.
Details of the agreement
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According to the merger agreement, a subsidiary of Speedway Motorsports will initiate an offer to get all of Dover’s outstanding shares. All Dover shareholders will get the same per-share prices in the deal. The holders of roughly 57.5% of Dover’s total aggregate shares, or holders that have a voting power of 92%.
Senior management statements
Marcus Smith, Speedway’s President, and Chief Executive Officer said:
We’ve been committed to working for the fans and growing the sport of NASCAR for more than 60 years.
This is a tremendous opportunity for us to continue growing our investment in motorsports.
I’d like to thank Denis McGlynn and the Dover Motorsports board for their cooperation and support in our goal to exceed customer expectations and create amazing lifetime experiences for all NASCAR fans.
Dennis McGlynn, Dover’s Chief Executive Officer, said:
While this marks the end of our 52 years as an independent operator in NASCAR, our future advancement is best secured by joining forces with a major player in the sport and we are happy to be able to become part of the Speedway Motorsports family and to be able to work with Marcus Smith as NASCAR embraces its future.
Speedway Motorsports has approved this deal. In addition, Dover’s Board of Directors created a special committee to negotiate, evaluate and review the merger agreement.
According to the special committee’s unanimous recommendation, Dover Motorsport’s Board of Directors approved the merger agreement. Both parties expect that they’ll be done with this deal by the end of December this year.
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