James Zenni, chief executive of private investment firm Z Capital Partners, has urged Affinity Gaming to sell off all or parts of its business if the US land-based and online sportsbook is to remain successful.
As reported by iGaming Business, Z Capital, which already owns a 39.5% stake in Affinity, last month offered to purchase the remainder of the company for $9.75 (€8.75) per share.
In response, Affinity has formed a ‘Special Committee’ to consider the offer and the benefits such a deal could offer to the company.
At the time of the initial offer, Zenni, who also serves on the Affinity board, said single ownership would make the most sense for the company.
He branded the current ownership model as “unproductive” and does not allow Affinity to pursue “transformational” initiatives in the market.
Zenni has now written to the Affinity board to further highlight his concerns over the company, which include a 30% drop in its value during recent years and reiterates a call for the firm to sell.
“Given the type of investors in the control group that now controls the board, it is not in a position to deliver value to Affinity Gaming’s shareholders in the future,” Zenni said.
“Unless fundamental changes are made, we would strongly encourage an orderly process to sell the company as a whole or in its constituent parts.”
source : www.igamingbusiness.com