Categories: world

NASCAR is trying to acquire International Speedway Corp. – News – Daytona Beach News-Journal Online

DAYTONA BEACH – The Family of the Late NASCAR Founder Bill France Sr. looking to take the public company that…

DAYTONA BEACH – The Family of the Late NASCAR Founder Bill France Sr. looking to take the public company that owns Daytona International Speedway and several other motorsports tracks privately.

NASCAR, the privately owned real estate broker of the France family, announced late Friday afternoon its offer to acquire all outstanding shares that the family does not already own by the International Speedway Corps share (NASDAQ: NYSE).

The offer to acquire ISC is estimated at $ 1.9 billion, 7.5 percent above the share price closing rate on Friday, according to a Bloomberg News report.

The intention is to combine ISC and NASCAR as a privately owned group of companies led by the France family, NASCAR announced in a press release on investor relations page on the ISC company website late Friday afternoon.

“In a highly competitive sports and entertainment landscape, a more consistent strategic approach is important for our future g rowth,” said Jim France, President and CEO of NASCAR, in the press release.

“We believe industry requires structural changes to best position sport for long-term success and this offer represents a positive step forward in that direction,” Sade France said.

Until the ISC has been acquired, “NASCAR and ISC will continue to function separately as independent entities working to deliver great racing experiences to our fans everywhere,” announced the press release.

“The result of this prospective offer will not affect the family family’s long-term commitment to the sport or the interest in retaining its current ownership in the ISC, as the France family is not interested in selling shares in ISC at this time

Seven times the NASCAR Cup Series winner Jimmie Johnson told ESPN that the combination of NASCAR, which monitors the sport of stockcar racing and ISC, owns and operates Speedway and 1

2 other motorsport racing facilities across the country can be good.

“My first reaction is that it ultimately can lead to flexibility (i) schedule, event date, “said Johnson.” We have all kicked around so many ideas. Do you shorten the schedule? Do you have a weekday game? “

” The merger and cooperation between these two units would be a step in that direction, I would think “the veteran driver added.” It would hopefully open these doors to make these conversations really happen and progress is made . (This is) pure speculation from my side. “

Bloomberg News report noted that” NASCAR has been looking for minority investors and a merger (by NASCAR and ISC) can help solve these efforts. It also has falling ratings (for TV broadcasts of NASCAR races) and the loss of some major sponsors, such as Lowes Co. “

NASCAR has retained Goldman Sachs & Co. LLC as financial advisor and Baker Botts as its legal advisor in connection with the planned acquisition of ISC according to the newsletter.

In addition, BDT & Co. has been retained as financial advisor to the France family

NASCAR’s offer will be reviewed by a special committee of independent ISC board members advised by independent legal and financial advisors, according to the press release.

France family members on the ISC board include Jim France and his granddaughter Read France Kennedy, ISC CEO .

Non-France Family ISC Board members with local bands are Mori Hosseini, President and CEO of Daytona Beach-based ICI Homes, Volusia-Flagler’s largest local-based homebuilder, J. Hyatt Brown, President of Daytona Beach-based National Insurance Agency Bro Wn & Brown Inc., which is also a public company, and Christy F. Harris, one Lawyer Attorney with Kinsey, Vincent, Pyle, L.C. law firm in Daytona Beach.

ESPN released on Friday reported that Brown will lead the committee that monitors the sale of ISC.

NASCAR offers to pay $ 42 per share for all outstanding ISC shares, according to reports from Bloomberg News and ESPN.

In Wall Street, trading shares began on Friday, ISC shares lowered 44 cents per share to close to $ 39.06 per share.

Following NASCAR’s announcement, the ISC share price was $ 2.74 per share at $ 41.80 in late hours trading from 19:00 on Friday.

“Can not comment,” Hosseini told the News-Journal late Friday.

News-Journal could not reach Brown for comment.

NASCAR spokesman Jon Schwartz refused to answer questions that sought more information.

“Unfortunately, we can not comment on anything further than the message,” he wrote in a text message responding to requests from The News-Journal.

The ISC speech art Gentry Baumline-Robinson sent on Friday sent all questions to the press release.

France is the son of the late NASCAR founder Bill France Sr. and brother of the late Bill France Jr. who succeeded his father as NASCAR chairman and CEO.

Both NASCAR and ISC are based in Daytona Beach, where their respective headquarters are located in the eight-story International Motorsports Center at the new One Daytona entertainment / retail / dining complex across the street from Speedway.

The two companies employ several dogs of red workers in Daytona Beach. ISC is also the owner and developer of One Daytona.

ISC was formed in 1953, five years after the formation of NASCAR.

Originally known as Bill France Racing Inc., the company signed the original contract to secure land for the construction of the Daytona International Speedway, opened in 1959.

ISC became a public company through an initial public offer of ordinary shares on November 15, 1996 .

Jim France, 73, Vice President of NASCAR, assumed the role of Interim Chairman and CEO in August, with the sons of Brothers Brian France who left a leave of absence after a DUI arrest.

Friday’s press release did not include the word “interim” referring to Jim Frank’s president and CEO titles.

In several national media reports in early May, it was also speculated that the France family could investigate the sale of a majority stake in NASCAR.

Read France Kennedy two days later at the Community Foundation of Volusia & Flagler’s 26th Annual Herbert M. Davidson Award Dinner in Daytona Beach, gave a speech confirming her and her family’s commitment to her hometown.

“There is so much for us to be proud of as we continue to work together for the future of Daytona Beach and Volusia County,” she said in a written statement to The News-Journal after the Community dinner where she received the award for ” Outstanding Community Service. “

The ISC in October reported a large year-wide jump in net financial income in the third quarter and revenues, but profits largely increase to benefits from tax law and employment law, which reduced the company’s corporate tax rate.

In a conference call with stock analysts on October 4, ISC President John Saunders acknowledged that attendance at NASCAR events in the quarter was on average 14 percent and average ticket prices fell by 2.5 percent.

When analysts asked to comment on reduction as well as the additional challenges caused by recent retirement in several popular NASCAR stars, including Dale Earnhardt Jr., Saunders said the need for a “high intensity focus with NASCAR and all racetracks, not just ISC paths and redirecting all NASCAR assets and trace funds “in order to respond better to the” cultural change of our sport “.

ISC has also been working to “increase the use of our facilities all year round” by offering non-motorsport events such as concerts and festivals. The development of One Daytona on ISC-owned land across the street from Speedway is another example of the company’s efforts to create new revenue sources, Saunders said. “We anticipate that One Daytona is a desirable destination for retail, dining and entertainment in the Daytona Beach area.”

Greg Motto, ISC’s Chief Financial Officer, told equity analysts: “Since we have experienced some headwinds and downturns in assumptions, we have worked carefully on the cost side of the business to handle margins.”

Share
Published by
Faela