Dover Motorsports up 60% after merger with Speedway Motorsports

Dover Motorsports (NYSE: DVD) was recently acquired by a leading sponsor, promoter, and marketer of motorsports entertainment. In addition, Dover recently announced that it would be executing a definitive agreement where Speedway will acquire it for $3.61 a share. 

Speedway’s Chief Executive Officer and President, Marcus Smith, and Dover’s Chief Executive Officer, Dennis McGlynn, made the announcement today. This news drove Dover Motorsports shares up by 60%. 

Details of the agreement

According to the merger agreement, a subsidiary of Speedway Motorsports will initiate an offer to get all of Dover’s outstanding shares. All Dover shareholders will get the same per-share prices in the deal. The holders of roughly 57.5% of Dover’s total aggregate shares, or holders that have a voting power of 92%.

Senior management statements

Marcus Smith, Speedway’s President, and Chief Executive Officer said:

He continued:

Smith said:

Dennis McGlynn, Dover’s Chief Executive Officer, said:

Speedway Motorsports has approved this deal. In addition, Dover’s Board of Directors created a special committee to negotiate, evaluate and review the merger agreement. 

According to the special committee’s unanimous recommendation, Dover Motorsport’s Board of Directors approved the merger agreement. Both parties expect that they’ll be done with this deal by the end of December this year.