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Private investment firm Z Capital Partners has withdrawn its bid to acquire a 100% holding in Affinity Gaming.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. Related articles: Z Capital back in for Affinity Gaming with increased offer Z Capital increases offer for Affinity Gaming Affinity forms ‘Special Committee’ to consider Z Capital proposal