Lionsgate Chairman Mark Rachesky Selling 10 Million Shares7 Apr, 2015 By: Erik Gruenwedel
Investor linked to pending sale of Atlanta Hawks NBA franchise
Lionsgate’s largest investor, Mark Rachesky, April 7 announced plans to sell 10 million shares of common stock — reducing his stake in the mini-major from 35% to 28%, according to a regulatory filing. Lionsgate shares closed down slightly at $33.68 per share.
Rachesky, who is chairman of Santa Monica, Calif.-based Lionsgate, is among several parties reportedly interested to acquiring the Atlanta Hawks NBA franchise, which Forbes valued at $425 million in 2014.
Rachesky assumed the position of chairman of the board in 2010 after his investment fund, MHR Fund Management, helped Lionsgate thwart a hostile takeover of the studio by maverick investor Carl Icahn.
That action later prompted an investigation by the Securities and Exchange Commission, which alleged Lionsgate failed to properly inform shareholders about the true nature of moving 16 million shares to a management-friendly board member (Rachesky).
Lionsgate last year agreed to pay $7.5 million to settle the SEC investigation.