Z Capital Partners, a private-equity firm, is trying yet again to purchase Affinity Gaming LLC. The company has provided an offer that values the casino gaming company at over $560 million, at $15 per share.
Z Captial already owns 41.1% of the company and has two individuals who hold seats on the board of Affinity. Shares of Affinity are Securities and Exchange Commission registered but are not traded on an exchange.
Affinity Gaming owns eleven casinos in the United States, that includes three properties in Nevada. In a statement on the matter, Z Capital commented that they have always believed that Affinity Gaming needs a singular voice and direction with a long-term capital partner to position the company for future growth.
In 2013, Z Capital had proposed a nonbinding agreement for Affinity but this was withdrawn. By early 2015, Z Capital was offering $9.75 per share and the price was increased to $15 per share, with the new offer at $15 per share as well.
Additional owners of Affinity Gaming include Silver Point Capital, with a representative of the group, David Reganato becoming the chairman of Affinity Gaming back in September. This past May, Affinity reported first quarter operating income had increased by just over 15%, which was due in part to slot revenues being prioritized.
President and Chief Executive of Z Capital, James Zenni, stated that the all-cash offer proposed to shareholders of Affinity provides a compelling opportunity to realize substantial and immediate value. The group has committed financing in place and are excited to pursue the closing of the acquisition.