Private equity firm Z Capital Partners, which already owns a 39.5% stake in Affinity Gaming, has offered to purchase the rest of the US land-based and online sportsbook for $9.75 (€8.93) per share.
James Zenni, chief executive officer of Z Capital, confirmed the offer in a letter to Affinity’s board, stating that a single ownership would make the most sense for Affinity.
Zenni also stated that the current ownership model is “unproductive” and does not allow Affinity to pursue “transformational” initiatives in the market.
Z Capital currently owns more than 8 million shares in Affinity, which itself has 11 casinos across four states in the US.
Under the proposed purchase agreement, Z Capital would self-finance the deal through the company’s funds and debt financing, with a source close to the talks stating that the offer implies an enterprise value of $487 million.
“Given Affinity’s size and configuration, and the challenges it face, we believe that it needs a single owner with resources and committed capital, and a willingness to put them to work, necessary to make the company grow,” Zenni said in the letter.
Z Capital two years ago made a similar offer to acquire the remainder of Affinity, but a deal could not be struck at the time.
Despite having sent the letter, Z Capital stated in a filing with the Securities and Exchange Commission that the letter is “intended to serve solely as an indication of interest and does not constitute a binding offer”.
source : www.igamingbusiness.com
