Redstone Sells CBS, Viacom Shares

NEW YORK: Sumner Redstone’s National Amusements, which owns controlling interests in Viacom and CBS Corporation, is selling close to $1 billion worth of shares in the two companies in order to repay part of its debt.

National Amusements announced an underwritten public offering of 26,040,909 shares of Class B common stock in CBS for $12 per share, with an option to offer a further 2,604,091 shares in the event of overallotment. This will bring in $312.5 million, with a potential additional $31.2 million. National Amusements is offering 19,382,945 shares of Class B common stock in Viacom for $28.25 per share, bringing in $547.6 million, rising to $602.3 million if the underwriters’ 30-day over-allotment option is exercised in full. Following the sale, National Amusements will continue to have full voting control of both companies, owning 75 percent of the voting Class A common stock.

National Amusements has been struggling to pay down its $1.5 billion debt, $500 million of which is due at the end of this month. It had mulled the sale of some of its movie theaters in order to bring in some cash.