Lions Gate Secondary Clears Out Carl Icahn (LGF)
Carl Icahn was supposed to be done and through with his efforts against Lions Gate Entertainment Corporation (NYSE: LGF). That was what we thought at any rate based upon prior news releases and prior reports. The company is selling shares…
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Lions Gate has priced this secondary public offering of 19,201,000 shares of common stock at $7.00 per share. Shares closed yesterday at $7.10 and the 52-week range is $5.69 to $7.84.
All of the shares are being sold by certain investment funds affiliated with Carl Icahn. After the offering is completed the Carl Icahn funds will still own approximately 3.1% of the outstanding common shares of Lions Gate. The sellers have also granted an overallotment option to the sole underwriting firm of Piper Jaffray to purchase up to an additional 2,879,985 common shares. & Co. is acting as the sole underwriter in the offering.
Shares of Lions Gate are right at the $7.00 pricing, so the stock is down 1.4% from yesterday’s close. Frankly, for a stock that trades only about 550,000 shares per day, an offering of this size is being very well absorbed even though this technically does not change the real float.
When you consider that Icahn was adding to the Lions Gate stake in 2009 at less than $5.00 per share, this was not exactly a bad outcome for Icahn.
JON C. OGG
Contact [email protected] for any questions or corrections.
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.