Shop At Home, Inc. Shareholders Approve E.W. Scripps Transaction
NASHVILLE, Tenn.--(BUSINESS WIRE)--Oct. 30, 2002--Shareholders of Shop At Home, Inc., (NASDAQ:SATH) today approved a transaction that will result in The E.W. Scripps Company (NYSE:SSP) acquiring 70 percent of Shop At Home Inc.'s television retailing network division.
Shareholders also approved a proposal to change the name of Shop At Home, Inc., to Summit America Television Inc.
Summit America will continue as a publicly held company with its primary assets being a 30 percent interest of the Shop At Home television retailing network, wireless spectrum rights and five broadcast television stations it owns and operates in Cleveland, San Francisco, Boston, Raleigh-Durham, N.C., and Bridgeport, Conn. Summit America's television stations will continue to broadcast Shop At Home television retailing network programming as part of a three-year affiliation agreement with Scripps.
Of the Summit America (formerly Shop At Home, Inc.) shareholders voting, 98% voted in favor of the proposed transaction with Scripps and the name change. In addition, a majority of all outstanding shares voted for the transaction.
Summit America announced on August 14 that it intended to complete the transaction with Scripps to fully capitalize on its position in the fast-growing electronic retailing industry.
Summit America will be paid $49.5 million by Scripps for 70 percent of its television retailing network division and also will obtain a $47.5 million loan from Scripps at 6% interest to be repaid in three years. The loan will be secured by three of Summit America's television stations.
Summit America expects to complete the transaction with Scripps on Thursday, October 31. At the close of the transaction, Summit America will repay in full its $75 million Senior Secured Notes and its $17.5 million revolving credit facility. |
