Z Capital drops acquisition bid for Affinity Gaming
Private investment firm Z Capital Partners has withdrawn its bid to acquire a 100% holding in Affinity Gaming.
Z Capital last year tabled a series of bids in an effort to acquire Affinity, the US land-based and online sportsbook that it currently holds a controlling 40.5% stake in.
The most recent offer came in November, with Z Capital chief executive James Zenni putting forward a bid of $15 per share to acquire the company.
However, in a letter to the Affinity board, Zenni has now confirmed that Z Capital has allowed an exclusivity agreement it had with the company to lapse as there are “no foreseeable prospects for a strategic transaction given the state of the credit market”.
In response, Affinity has dissolved a special committee that had been formed to consider the takeover proposals from Z Capital.
Formed in April of last year, the special committee had been comprised of mainly independent directors of the Affinity board.
However, with Z Capital having announced its withdrawal from the acquisition bid, members of the special committee having unanimously voted to dissolve the body.
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