Z Capital Partners has made an increased offer to acquire US land-based and online sportsbook Affinity Gaming.
As reported by iGaming Business, the private investment firm has launched a number of bids in an effort to acquire Affinity, in which it already holds a 40.5% stake.
Affinity in May turned down an offer from Z Capital of $9.75 (€8.77) per share, despite a plea from James Zenni, chief executive of the private investment firm, for Affinity to accept the bid.
However, in a letter filed earlier this week with the Securities and Exchange Commission, Zenni said he would pay $11.50 per share in order to acquire all outstanding shares in Affinity.
Zenni said Z Capital has now filed a draft merger agreement, which will allow the Affinity board 30 days to find any offer superior to its bid.
“We believe our proposal provides maximum value and an opportunity to market test the transaction to fulfil the fiduciary duties of the company’s board of directors to Affinity Gaming’s stockholders,” Zenni said.
“Absent a transaction of the type we are now proposing, we do not think there is any opportunity for Affinity’s stockholders to see meaningful appreciation in their equity value or to realise that value in the foreseeable future.”
Zenni also noted that the transaction would be financed by equity capital from funds managed and advised by Z Capital, in addition to debt financing from sources with which the firm has a long-standing relationship.
source : www.igamingbusiness.com
