At a special meeting held on Wednesday, Sinclair Broadcast Group’s shareholders gave an affirmative nod to the company’s previously announced reorganization.
With a share exchange coming, a new holding company — Sinclair Inc. — is on track to become the publicly traded parent of Sinclair Broadcast Group and its subsidiaries.
The reorganization is expected to close in the second quarter of 2023.
In the reorganization, each outstanding share of the company’s Class A common stock and Class B common stock will be exchanged automatically on a one-for-one basis for a share of Class A common stock and Class B common stock, respectively, of “New Sinclair.”
New Sinclair’s Class A common stock will continue to trade on the Nasdaq Global Select stock market under the ticker symbol “SBGI” — just as the company’s Class A common stock does today.
The rights and benefits of the holders of shares of New Sinclair’s common stock, including voting rights, will be the same as the rights and benefits of the holders of shares of the company’s common stock in all material respects.
The reorganization is not expected to result in a change in the directors, executive officers, management or business of the public company, or to impact the timing of the declaration and payment of our regular quarterly dividends.
Additionally, the Reorganization is not expected to result in gain or loss to the company’s stockholders for U.S. federal income tax purposes.
A tabulation of the votes on the reorganization will be included in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission.
