Z Capital Partners, the largest shareholder of Affinity Gaming at 39.5 percent, had their offer to buyout the company rejected formally. Matt Doheny, a member of the Affinity board, said the .75 per share offer “significantly undervalues” the company. Affinity filed the letter with the Securities and Exchange Commission.
Doheny wrote, “Z Capital would need to materially increase the per share price in the proposal to make it attractive based on the special committee’s evaluation.” James Zenni, CEO of Z Capital, said Affinity’s value has declined more than 30 percent in recent years.
Z Capital wrote, “In addition, 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.” Although they are not publicly traded, Affinity has publicly held debt.
