Hugh Hefner bids $185 mn to take Playboy private | business | Hindustan Times
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Hugh Hefner bids $185 mn to take Playboy private

Playboy Enterprises Inc said today it received an offer from founder Hugh Hefner to take the company private in a deal which values the company at around $185 million.

business Updated: Jul 12, 2010 19:53 IST

Playboy Enterprises Inc said on Monday it received an offer from founder Hugh Hefner to take the company private in a deal which values the company at around $185 million.

Hefner has offered to buy all shares he doesn't currently own for $5.50 per share in cash, a premium of about 40 per cent to its closing price of $3.94 on Friday.

He already owns around 69.5 per cent of Playboy's Class A common stock and 27.7 per cent of its Class B stock.

Playboy said Hefner is partnering with Rizvi Traverse Management, which has said it will raise financing for the transaction from major lenders.

The company said that in Hefner's proposal letter he is not interested in any sale or merger of Playboy Enterprises, selling Hefner's shares to any third party or entering into discussions with any other financial sponsor for a similar transaction.