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LI exec Robert F.X. Sillerman seeks to take SFX Entertainment private

Robert F. X. Sillerman is working in February

Robert F. X. Sillerman is working in February 2015 to take his company SFX Entertainment private. In this July 15, 2004, photo he is on the grounds of Southampton College where he was chancellor. The school is now Stony Brook University, Southampton. Credit: Newsday / Thomas A. Ferrara

Southampton entertainment executive Robert F.X. Sillerman is offering to take private his publicly traded electronic dance music company, SFX Entertainment Inc., the company confirmed.

Sillerman, former chancellor of Southampton College and onetime holder of an interest in Elvis Presley's Graceland, is offering $4.75 per share for the roughly 60 percent of outstanding common shares he does not own.

The company went public in October 2013 at $13 a share.

Shares of the Manhattan entertainment company closed Thursday at $4.76, down 3 cents. On Wednesday they gained 29.5 percent to $4.79 after the offer became public.

The company's stock market value is $431 million, according to Bloomberg.

In a news release, SFX said its board of directors had established a special committee of independent directors and engaged legal counsel to review and negotiate Sillerman's offer.

In a separate statement, Sillerman said that after the acquisition he would allow current shareholders "to retain their equity interests."

"I have put forward a proposal that offers substantial value and flexibility to all shareholders," said Sillerman, who has served as CEO and chairman since the company's creation. "Given the inherent risks in our business, my offer guarantees a substantial premium to current price."

Sillerman also served as executive chairman of a precursor company that was sold to Clear Channel in 2000 and now is known as Live Nation.

In 1996, while Sillerman was chancellor of Southampton College Long Island University, the school gained national attention when Kermit the Frog delivered the commencement address.

Long Island University sold the cash-strapped college to Stony Brook University for $35 million in 2006.  Stony Brook relocated undergraduate programs from the Southampton campus to its main campus in 2010, but continues to operate several programs there.

Sillerman was a major shareholder of CKX Inc., which owned "American Idol" and licensing rights to Elvis Presley and his Graceland estate, before the company was acquired by a private equity firm.

SFX stages live events under brands such as Tomorrowland, TomorrowWorld, Mysteryland, Sensation, Stereosonic, Electric Zoo and Disco Donnie Presents.

An earlier version of this story said Stony Brook University had closed its Southampton campus.

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