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Speedway Motorsports, Inc. Receives Proposal For Acquisition
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Speedway Motorsports, Inc. (SMI) has announced that its Board of Directors has received a non-binding proposal from Sonic Financial Corporation to acquire all outstanding shares of SMI’s common stock.
Sonic Financial Corporation is a company owned and operated by Bruton Smith and his family. Sonic Financial currently owns around 29 million shares in SMI, along with over 70 percent of voting power for SMI, according to Motorsport.com. This offer would give Smith more control of the company.
SMI operates eight tracks around the nation that host Monster Energy NASCAR Cup Series’ (MENCS) races, including Texas Motor Speedway, Bristol Motor Speedway, Charlotte Motor Speedway, Las Vegas Motor Speedway, Kentucky Speedway, Atlanta Motor Speedway, New Hampshire Speedway and Sonoma Raceway. As of now, SMI will continue to operate as normal.
The proposal requires the approval of the majority shareholders and the approval of the transaction by a special committee, which consists of independent directors and will be advised by independent legal and financial advisors.
“The Company cautions stockholders and others considering trading in its securities that the Board has only received the non-binding proposal letter from Sonic Financial and no decisions have been made by the Special Committee with respect to the Company’s response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated,” a company release said.
The news is comparable to an announcement made last fall which saw NASCAR make a similar non-binding offer to acquire outstanding shares of the International Speedway Corp., the operator of several MENCS tracks. That offer has not yet been accepted and is being challenged by at least two lawsuits, according to Motorsport.com.
For more information, visit the SMI website.
Sonic Financial Corporation is a company owned and operated by Bruton Smith and his family. Sonic Financial currently owns around 29 million shares in SMI, along with over 70 percent of voting power for SMI, according to Motorsport.com. This offer would give Smith more control of the company.
SMI operates eight tracks around the nation that host Monster Energy NASCAR Cup Series’ (MENCS) races, including Texas Motor Speedway, Bristol Motor Speedway, Charlotte Motor Speedway, Las Vegas Motor Speedway, Kentucky Speedway, Atlanta Motor Speedway, New Hampshire Speedway and Sonoma Raceway. As of now, SMI will continue to operate as normal.
The proposal requires the approval of the majority shareholders and the approval of the transaction by a special committee, which consists of independent directors and will be advised by independent legal and financial advisors.
“The Company cautions stockholders and others considering trading in its securities that the Board has only received the non-binding proposal letter from Sonic Financial and no decisions have been made by the Special Committee with respect to the Company’s response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated,” a company release said.
The news is comparable to an announcement made last fall which saw NASCAR make a similar non-binding offer to acquire outstanding shares of the International Speedway Corp., the operator of several MENCS tracks. That offer has not yet been accepted and is being challenged by at least two lawsuits, according to Motorsport.com.
For more information, visit the SMI website.
