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Microcap & Penny Stocks : Emerson Radio Corp (MSN) -- Ignore unavailable to you. Want to Upgrade?

To: BlueCheap who wrote (2862)	8/4/1999 5:41:00 PM
From: Tony Rome	Respond to of 3501

HERE IS THE LATEST RELEASE AND A LITTLE MORE DETAIL, Emerson to Sell Sport Supply Stake to Oaktree Capital Parsippany, New Jersey, Aug. 4 (Bloomberg) -- Emerson Radio Corp., a maker of home-electronics products, said it plans to sell its stake in Sport Supply Group Inc. to Oaktree Capital Management Corp. for $28.9 million in cash and notes. Parsippany, New Jersey-based Emerson will sell its 31 percent interest in Sports Supply, as well as warrants to buy another 1 million shares, for $15 million in cash. Oaktree, a Los Angeles-based investment partnership, will also surrender Emerson's convertible debentures worth about $13.9 million. The transaction would give Oaktree about 46 percent ownership in Farmers Branch, Texas-based Sport Supply, a direct-mail marketer of sporting goods. The agreement values Sport Supply's shares at $11.53 a share, Emerson said. That's a 39 percent premium to Tuesday's closing price of 8 5/16. Emerson said it bought its stake in Sport Supply for $7.16 a share in 1996. ''It's been a nice return for us, and this price is above market,'' said Kenneth Corby, Emerson assistant chief financial officer. ''We think it's a worthwhile play.'' Over the past year, Oaktree has increased its stake in Sport Supply. In December, it offered $14.6 million in cash for a controlling stake in Emerson, Sport Supply's biggest shareholder, from Emerson Chairman and Chief Executive Officer Geoffrey Jurick, who's also Sport Supply's chairman and chief executive. That offer was turned down. Emerson will use the cash to help it buy back as much as $23 million of its common shares at a price of not less than $1 a share. It would borrow the remainder of the money needed for the buyback. Additionally, Jurick, who owns 29.8 million shares, or 61 percent, of Emerson's 49 million outstanding, has agreed to sell some of his shares back to the company to help him raise $20 million to settle a personal litigation issue with creditors. The settlement is important to Emerson because Jurick would have had to sell his shares in Emerson on the open market if he lost the litigation. If that happened, control of Emerson could change, and the company would default on its bank loans, Corby said. Shares of Emerson rose 3/16 to 11/16 in early afternoon trading. They've risen 57 percent over the past year. Shares of Sport Supply rose 1 3/16, or 14 percent, to 9 1/12, and have risen 31 percent over the past year. Aug/04/1999 16:34 ===============TONY ROME===============