Lionsgate Delays Secondary Offering of Carl Icahn Shares (Report)
Market volatility has led the mini-major to put a secondary sale of shares formerly held by the billionaire investor on ice.
TORONTO -- Lionsgate Entertainment has delayed a secondary offering of shares in the mini-major formerly held by Carl Icahn due to adverse market conditions, Reuters reported Tuesday.
The original plan was to sell up to 44,161,971 shares in Lionsgate as part of a settlement with Icahn that would see the billionaire investor and son Brett Icahn unload their 33% stake for $7.00 a share and clear out after a bitterly-fought proxy battle.
Lionsgate vice-chairman Mark Rachesky acquired around 11 million company shares from Icahn, as did the mini-major’s management, led by CEO Jon Feltheimer.
The remaining 19.2 million were to be unloaded as part of a secondary offering, which has now been put on hold due to market volatility, Reuters reported, citing unnamed sources.
A Lionsgate spokesman declined comment on the media report.
Shares in Lionsgate were down by 5 cents, or just under 1%, to $6.89 during noon hour trading on the New York Stock Exchange.