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Bruton Smith moves to privatize Speedway Motorsports Inc.

during the Monster Energy NASCAR Cup Series Pennzoil Oil 400 at Las Vegas Motor Speedway on March 3, 2019 in Las Vegas, Nevada.

By AMANDA VINCENT

Bruton Smith, founder and majority stakeholder of Speedway Motorsports Inc., the parent company of several tracks hosting Monster Energy NASCAR Cup Series races, has made an offer to buy all shares of stock in the publicly-traded SMI he doesn’t already own. The offer was made through Sonic Financial Corp., owned and operated by Smith and his family.

If Smith’s offer is accepted, SMI would become a private company.

“SFC and members of the Smith Group are best-positioned to continue to manage and oversee the Company as a private company,” a letter from Sonic Financial Corp. to SMI read. “Mr. Bruton Smith, Executive Chairman and founder of the company, has been a pioneer in the motorsports business since the sport’s beginning. His ingenuity and vision for the sport have been highly instrumental in the motorsports business for decades, and the sport has recognized his contributions by inducting him into the NASCAR Hall of Fame.”

The offer is similar to one made by the France family, which owns and operates NASCAR, for complete control and privatization of International Speedway Corp. with the intention of merging ISC and NASCAR. The France family is majority stakeholder in ISC.

The France family’s offer to purchase outstanding ISC stock was made public last November, but the offer has not been completed, at least in part, because of a class-action suit in a Florida court.

The Sonic Financial offer is for $18/share. Shares were $18.55 soon after the offer was made. The previous 52-week high was $18.36. The SMI Board of Directors formed a special committee to consider the Sonic Financial’s offer.

SMI and ISC combine to own most of the tracks on the Cup Series schedule. NASCAR’s deals with race host tracks expire after the 2020 season. Big scheduling changes are, reportedly, on the horizon after current deals expire.

SMI tracks include Atlanta Motor Speedway, Bristol (Tenn.) Motor Speedway, Charlotte (N.C.) Motor Speedway, Kentucky Speedway in Sparta, Las Vegas Motor Speedway, New Hampshire Motor Speedway in Loudon, Sonoma (Calif.) Raceway and Texas Motor Speedway near Fort Worth.

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Posted by on May 10, 2019. Filed under Breaking News,Featured,NASCAR. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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