9/26, 2:23 PM (Source: TeleTrader)
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Liberty proposes Sirius XM combination

Liberty Media Corporation revealed on Tuesday that it proposed to the Special Committee of the Board of Directors of Sirius XM Holdings Inc. a combination of Liberty SiriusXM tracking stock group (LSXM) with Sirius XM in order to establish a new public company.

Under this proposal, Liberty would split off LSXM through SplitCo, a new Liberty subsidiary, which would take over all of LSMX's assets and liabilities. Following the split-off, SplitCo would merge with SiriusXM to form New SiriusXM. Minority stockholders of SiriusXM would be granted shares of New SiriusXM on a one-for-one basis and would own around 16% of the new company, while Liberty would hold an 84% stake in it.

"Liberty's proposal rationalizes the dual corporate structure between LSXM and SiriusXM and provides value to all shareholders with a more flexible and attractive currency in New SiriusXM," Liberty President & CEO Greg Maffei (pictured) stated.

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