Sitestar Submits Offer for Fashionmall.com; Offers $3 Per Share in Cash, a 45% Premium Over Current Price
ENCINO, Calif.--(BUSINESS WIRE)--Oct. 23, 2000--Sitestar Corporation (OTCBB:SYTE), an Internet holding company, today announced that it has submitted an offer letter to the management of Fashionmall.com (Nasdaq:FASH) to acquire all of Fashionmall.com's outstanding shares for $3 per share in cash. This price represents a 40% premium from its closing price of $2.0625 per share on the day the offer was made. The offer is valued at approximately $22.5 million.
"Considering the value in Fashionmall.com assets and business, and in light of the deep discount its shares are trading at, we are prepared to tender for all the shares at a significant premium to the current market price," said Clinton J. Sallee, President and Chief Executive Officer of Sitestar.
"Fashionmall.com is attractive from both a strategic and financial perspective. We see long-term growth potential in their Internet assets and brand value. Our financing is in place and we are seeking management's support for this transaction," added Sallee.
Sitestar recently withdrew an offer to purchase Mothernature.com due to lack of cooperation on behalf of management of that company.
CONTACT:
Sitestar
Clinton J. Sallee, 818/981-4519
csallee@sitestar.com |
