Sinclair Selling Stake in Atlantic Automotive

Jun 6, 2005  •  Post A Comment

Sinclair Broadcast Group on Monday said it is selling its 17.5 percent stake in Atlantic Automotive, an automobile dealer group in the Mid-Atlantic region, as the company heeds shareholders’ desire to end the company’s investment in the dealer group.

Baltimore-based Sinclair first invested $20 million in Atlantic Automotive in December 2002 and has seen the stake’s value rise to $21.5 million and received nearly $2.5 million in dividends. An affiliate of Atlantic Automotive, Auto Properties, agreed to purchase the stake. The companies expect to complete the transaction in the next 90 days.

“We initially invested in the auto space because that industry represents the largest category of advertisers for television stations, and [Atlantic Automotive], being the largest automobile dealer in the Mid-Atlantic region, is a well-run, profitable company overlapping our Baltimore television station market,” Sinclair board member Martin Leader said in a statement. “However, a year ago, in response to our shareholders’ feedback, the board decided not to make further investments into Atlantic Automotive.”