HMTV - Hemisphere Media shareholder opposition to take private said to increase

Hemisphere Media ( NASDAQ: HMTV ) shareholder opposition to its $7/share takeout is said to be increasing ahead of a shareholder vote on the sale.

The increased opposition comes as influential proxy firm ISS is expected to make its recommendation on the deal next week, ahead of the Sept. 8 holder vote on the deal, according to a Dealreporter item.

The holder opposition and vote comes after Hemisphere ( HMTV ) disclosed in late June it received offers above the $7/share deal it agreed to with Searchlight Capital Partners. HMTV received a takeover offer for $9/share on June 3 from undisclosed Company E and it received an offer of $8/share from undisclosed Company F on June 7, according to a proxy filing.

Standard General, which is in the process of buying broadcast television company Tegna ( TGNA ) for $8.6 billion, was one of the higher bidders, according to Dealreporter. Paramount Global, the owner of the CBS network and Paramount+ streaming service, made a $200 million offer for Pantaya in April, according to the report.

A sale of Pantaya may unlock enough value in Hemisphere ( HMTV ) so that the Spanish language broadcaster can remain a standalone business and it could push its shares into the "mid-teens" or higher, a source told Dealreporter.

HMTV announced in May it was being sold to unit of Gato Investments LP, a portfolio investment of Searchlight Capital. Concurrently with the Gato deal, HMTV entered into a separate agreement to sell Pantaya , the Spanish language streaming platform in the U.S. to TelevisaUnivision.

Hemisphere ( HMTV ) shares ticked down 0.1% in trading on Wednesday.

The higher offers came as Edenbrook Capital LLC, an HMTV holder, in June said that the equity value of its going private deal should be at least $16-$23 per share.

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