B. Riley Financial Withdraws Acquisition Proposal Due to Failure of Spok Holdings’ Board to Engage
LOS ANGELES, June 16, 2020 /PRNewswire/ — B. Riley Financial, Inc. (NASDAQ:RILY) («B. Riley») and its subsidiary, B. Riley Capital Management, LLC, a shareholder of Spok Holdings, Inc. (NASDAQ:SPOK) («Spok» or the «Company»), today announced it has withdrawn its offer to acquire the Company for $12.00 per share due to the failure of Spok’s Board of Directors to engage. B. Riley sent the following letter to Spok’s Board on June 16, 2020:
June 16, 2020
Spok Holdings, Inc.
6850 Versar Center, Suite 420
Springfield, VA 22151
To the Board of Directors:
We have not received any communication from Spok’s Board of Directors or its representatives since our May 18, 2020 letter which reiterated our interest and proposal to acquire the Company for $12.00 per share.
The Spok Board’s lack of responsiveness to our proposal and its failure to consider exploring a sale, as called for by large and long-term shareholder Palogic Value Management on March 24, 2020, are indicative of a lack of concern for creating shareholder value, in our view.
While we remain very interested in acquiring Spok, we are not willing to hold open an offer for an indeterminate amount of time while the Board rebuffs calls to explore strategic options for a company whose assets have languished under their oversight. As such, we are withdrawing our current proposal to acquire Spok.
Chairman and Co-Chief Executive Officer
B. Riley Financial, Inc.
About B. Riley Financial, Inc. (NASDAQ:RILY)
B. Riley Financial provides collaborative financial services tailored to fit the capital raising and business advisory needs of public and private companies and high-net-worth individuals. B. Riley operates through several wholly owned subsidiaries which offer complementary end-to-end capabilities spanning investment banking and institutional brokerage, private wealth and investment management, corporate advisory, restructuring, due diligence, forensic accounting and litigation support, appraisal and valuation, and auction and liquidation services. Certain registered affiliates of B. Riley originate and underwrite senior secured loans for asset-rich companies. B. Riley also makes proprietary investments in companies and assets with attractive return profiles. For more information about B. Riley and its affiliated companies, visit www.brileyfin.com.
B. Riley Financial
Jo Anne McCusker
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SOURCE B. Riley Financial, Inc.