Denali Investors July 2016 presentation on Liberty Braves Group (BATRA). Stay tuned for Denali Q2 letter
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Also see.
Denali Investors 2015 Letter - A Rare Down Year
Denali Investors Updated Presentation: The Malone Complex
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Allan Mecham’s Arlington Value Capital 2014 Annual Letter
Denali Investors Up 66 Percent In 2013, Brings Buffett’s 1950s Back
After 66% Return In 2013, Denali Investors Up 19% In 2014
LMCA+LSXMA+BATRA 2016/04/15
LMCA spinoffs of LSXMA and BATRA
- New LMCA (Liberty Media) holds LYV stake, other assets and liabilities
- LSXMA (Liberty Sirius) holds Sirius stake, other assets and liabilities
- BATRA (Liberty Braves) holds Atlanta Braves, real estate, other assets and liabilities
- Separation to create pure play Sirius and Braves equities
- Separation to highlight value of LSXMA and BATRA assets within LMCA
- New LMCA, LSXMA, and BATRA will be structured as tracking stocks
- Allow each entity to pursue appropriate value creation path
Liberty Media Pro Forma Structure
Tracking Stocks 101
What are tracking stocks?
- Tracking stocks allow investors to invest in the performance of a specific subset of Liberty Media’s assets and liabilities
Rationale for tracking stock restructuring
- Aim to reduce trading discount to NAV at which Liberty Media Corporation stock traded prior to creation ofthe tracking stocks
- Provide greater investor choice
- Create specific transaction/compensation currencies for each tracker
- Allows separate capitalization and fundraising in a more targeted way
- Continue to provide advantages of doing business under common ownership
- Provide greater ability to tailor management and employee incentives
Nothing has changed about the legal ownership or control of the Braves – Liberty Media Corporation remains the legal owner. Liberty Media has not spun-off, sold or otherwise monetized the Atlanta Braves
Liberty Braves Group (BATRA) Summary
Liberty Braves Group
- BATRA will hold the Atlanta Braves Team, minor league teams, and other assets
- SunTrust Park Stadium
- Mixed-use associated real estate development projects
- $200m rights offering (similar to that of LBRDA’s)
- Net Cash of $96m
- Debt (ex Mixed-use) of $347m
- BATRA will be structured as a tracking stock
Indicative NAV for Liberty Braves Group
Introducing the Liberty Braves Group
What are we tracking?
- Atlanta Braves baseball team
- Liberty Media took ownership in 2007
- Exchanged 68.5m shares of TWX for the Atlanta Braves, Leisure Artsand $960m in cash
- Forbes value $458m at time of exchange; Liberty’s basis inherited from Time Warner Inc.
- Liberty Media took ownership in 2007
SunTrust Park
- $672m ballpark to be built in Cobb County, GA
The Battery Atlanta
- Mixed-Used Development Project to drive incremental traffic
- $558m mixed-use complex featuring:
- Up to 400,000 square feet of restaurant and retail space
- 600 upscale residences
- 265-room Omni hotel
- Nine-story regional headquarters for Comcast that will employ more than 1,000 people
Tracking stocks distributed April 15th
- Trading under ticker symbols BATRA/B/K
- Each holder of Liberty Media Corporation common stock received 0.1 of a share of corresponding series of Liberty Braves Group
Planned $200m rights offering for BATRK common stock
Liberty Braves Group Summary Organizational Structure
See full slides below.
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