Mini-major prices his stake at $7 a share
Lionsgate has taken a key step toward completing a settlement with billionaire Carl Icahn and his son Brett Icahn under which the Icahns will sell nearly all of their 33% stake in the mini-major.The company announced Thursday that it has priced a secondary public offering for 19.2 million of the shares held by the Icahns at $7 a share. It didn’t identify potential buyers. Lionsgate said Thursday that it expects to close the offering on Tuesday and that once it’s completed, the Icahns will own approximately 3.1% of the company. Shares of Lionsgate closed up 24¢ to $7.34 Thursday. Lionsgate and Icahn had announced Aug. 30 that they were ending three years of battling in an agreement to sell his 33% stake in the company at $7 a share via a series of deals totaling about $309 million. The settlement called for Lionsgate to buy back 11 million shares from Icahn at $7 a share and for Lionsgate director Mark H. Rachesky to purchase an additional 11 million shares from Icahn at $7 per share. Piper Jaffray and Co. is acting as the sole underwriter in the offering.