|Speedway Motorsports, Inc. (SMI), the operator of eight major speedways around the US, has entered into a “definitive merger agreement” with Sonic Financial Corp. of Charlotte, NC, according to published reports.|
Sonic Financial Corp. is owned by Bruton Smith and his family. Smith is also the founder and majority stakeholder in SMI. The merger would take SMI private, a move similar to the one announced by International Speedway Corp. (ISC) in May. ISC entered an agreement to sell its outstanding shares to NASCAR, a deal which is expected to close later this year.
Sonic Financial would acquire all outstanding shares of SMI common stock at $19.75 per share in cash. SMI stated the following in a published memo to its employees:
Speedway Motorsports, Inc. will continue its focus on owning and operating first-class, modern facilities in premier geographic markets, and providing our individual and corporate fans and customers with the best entertainment experience and marketing value in the motorsports industry.We have no current plans for job eliminations as a result of the proposed transaction. Rather, the proposed transaction will enable us to accelerate our long-term growth plan and transformation, and maintain our focus on providing the best entertainment experience and marketing value in the motorsports industry.
SMI currently owns and operates Atlanta Motor Speedway, Bristol Motor Speedway, Charlotte Motor Speedway, Kentucky Speedway, Las Vegas Motor Speedway, New Hampshire Motor Speedway, Sonoma Raceway and Texas Motor Speedway.
For more information: speedwaymotorsports.com.
The merger would take Speedway Motorsports, Inc. (SMI) private, a move similar to the one announced by International Speedway Corp. (ISC) earlier this year.