Regent Communications investor recommends selling the company

By Lisa Kerner

Charlotte, N.C., April 4 - Regent Communications Inc. investors led by Riley Investment Management LLC suggested to the company's board of directors that Regent consider selling as a means of increasing shareholder value.

In a letter to the board, Riley Investment said that while it is encouraged by Regent's "strong operational performance," the company's "small size relative to its public company costs" make it difficult to realize value.

The letter was included as part of a schedule 13D filing with the Securities and Exchange Commission.

"On the low end, we believe that a sale to financial buyers would yield a price of $4.50 per share or approximately a 50% premium to current stock price," the letter stated.

"On the high end, we believe that a sale to strategic buyers could yield a price of over $6.00 per share or a 100% premium."

Riley Investment beneficially owns 2,525,018 shares, or 6.5%, of the Cincinnati-based broadcasting company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.