Imagine bid by Howard, Grazer OK’d

Imagine Films Entertainment Inc. is expected to announce today that its board of directors has accepted company founders Brian Grazer and Ron Howard’s $ 9 -a-share bid to acquire the remaining stock they don’t already own.

The board met yesterday for final consideration of the $ 23.5 million offer, which has been extended twice in the past two months.

A formal announcement will be made once the paperwork is completed, said a source close to the transaction.

Imagine shares dropped 25 cents in trading yesterday to close at $ 8.50.

In 1992, the stock traded as high as $ 10.50.

Five shareholder lawsuits contend that Grazer and Howard, who own a 54% stake in the company, are trying to acquire the company on the cheap and that the buyout price should have been more in the $ 12 range.

Grazer and Howard, who announced their departure last April, have since formed a new company, HG Prods., which has a six-year production/distribution deal with Universal.

$ 14 mil loan

The studio also is loaning them $ 14 million to buy back the remaining Imagine public shares, according to documents filed with the Securities & Exchange Commission.

Universal also has agreed to loan Grazer and Howard $ 3.2 million that may be used for legal expenses involved in fighting shareholder lawsuits.

The company reported its fiscal 1992 earnings just two weeks ago, after filing for an extension, revealing a loss of $ 2.5 million for the year compared to net income of $ 1.6 million in 1991.

The release, however, did not reveal the company’s cash on hand, though it had $ 21 million in its coffers last June.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Film News from Variety