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Banking, finance, and taxes

Playboy Finally Going Private (PLA)

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By Jon C. Ogg Updated Published

Playboy Enterprises, Inc. (NYSE: PLA) has been in talks to go private for some time.  It appears to be happening.  The company just announced this morning that Icon Acquisition Holdings, L.P., a limited partnership controlled by Hugh M. Hefner, will acquire the public shares of Playboy at a price of $6.15 per share.

The deal is a 56% premium to back when a going private deal was first announced in July 2010 and it still represents a 18.3% premium over the closing price on Friday.

Icon Acquisition Holdings L.P., has obtained equity commitments from Rizvi Traverse Management LLC and a debt commitment for the transaction from affiliates of Jefferies & Company, Inc.

The board of directors has approved the transaction after forming a special committee to evaluate the deal.  Its decision was unanimous in favor of it.

Playboy CEO Scott Flanders will remain with the company in his current position and maintain a significant equity investment in Playboy.

After years of declining sales, maybe the Playboy empire will appear to be better off without having shareholders.

Playboy’s 52-week trading range is $3.04 to $6.10.

JON C. OGG

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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