Malibu Chairman Offers to Buy Outstanding Shares

Ira L. Young, chairman of Malibu Grand Prix Corp., offered to buy the 41% of Malibu he does not already own for about $4.63 million in cash.

Malibu, based in Woodland Hills, operates 39 amusement centers in the United States that feature amateur auto-racing tracks, miniature golf courses and other recreation facilities.

Young and his affiliated companies currently own 7.52 million of Malibu's 12.66 million common shares outstanding, and on Friday he offered 90 cents for each of the remaining shares.

Young, who has been Malibu's chairman since 1984, said in a statement that he would formally submit his bid to Malibu's board Wednesday. He also said the proposal would be subject to approval by the directors and Malibu's stockholders, and on his ability to secure the necessary financing.

However, he declined an interview request seeking elaboration on why he wants to buy the company.

In 1987, Malibu's net income was $2.6 million on sales of $30.2 million. However, Malibu's income from operations in 1987 jumped to $2.7 million from $869,000 the year before.

Copyright © 2019, Los Angeles Times
EDITION: California | U.S. & World
63°