Outdoor Channel Determines That InterMedia Proposal is a Superior Proposal
TEMECULA, Calif., May 6, 2013 (GLOBE NEWSWIRE) -- Outdoor Channel Holdings,
Inc. (Nasdaq:OUTD) (the "Company" or "Outdoor Channel") today announced that
its board of directors, after consultation with the Company's outside legal
counsel and financial advisor, unanimously determined that the May 3, 2013
proposal submitted by InterMedia Outdoors Holdings, LLC and IMTOC Merger Sub,
Inc. (together, "InterMedia") to acquire all outstanding shares of Outdoor
Channel common stock in an all-cash transaction at a price of $9.75 per share
constitutes a "Superior Proposal" as such term is defined in Outdoor Channel's
merger agreement with Kroenke Sports & Entertainment, LLC ("KSE") and KSE
Merger Sub, Inc. dated as of March 13, 2013 (the "KSE Agreement"). The
definitive terms and conditions of a merger agreement detailing this proposal
have been fully negotiated, and financing commitments have been obtained by
InterMedia.The receipt by InterMedia of financing is not a condition to the
closing of the proposed InterMedia merger.In addition, there are no
contractual limitations on remedies available to Outdoor Channel against
InterMedia in the event of a financing failure.
In accordance with the terms of the KSE Agreement, Outdoor Channel has
notified KSE of its intention to terminate the KSE Agreement, subject to KSE's
right to propose, within four business days of such notice, changes to the
terms of the KSE Agreement that would, in the good faith judgment of the
Outdoor Channel board (after consultation with outside legal counsel and
financial advisors), cause the InterMedia proposal to no longer constitute a
At this time the KSE Agreement remains in effect, and the Outdoor Channel
board has not changed its recommendation with respect to the KSE transaction.
If the InterMedia proposal continues to constitute a Superior Proposal after
the expiration of the four business-day period ending at 5:00 p.m., Pacific
Time, May 9, 2013, Outdoor Channel expects to terminate the KSE Agreement and
to enter into the merger agreement with InterMedia.In such event, Outdoor
Channel would be required to pay KSE a break-up fee in the amount of
Stockholders do not need to take any action at this time.If a stockholder has
previously submitted its proxy card or voted by internet or telephone and does
not currently wish to change its vote, no further action is required by such
stockholder.If a stockholder would like to vote or change its vote, please
refer to the instructions provided in the definitive proxy statement which was
mailed to Outdoor Channel stockholders on or about April 12,
2013.Stockholders are urged to carefully review the definitive proxy
statement and the other materials included or incorporated by reference
therein as these materials include additional information regarding the
The Outdoor Channel board cautions that there can be no assurance that the
InterMedia proposal will lead to the termination of the KSE Agreement and the
execution of a merger agreement with InterMedia, or that the InterMedia
proposal will be approved or consummated.
Lazard is serving as exclusive financial advisor to the Company in connection
with the transaction. Wilson Sonsini Goodrich& Rosati, P.C. is legal advisor
to the Company.
About Outdoor Channel Holdings, Inc.
Outdoor Channel Holdings, Inc. owns and operates Outdoor Channel and
Winnercomm Inc. Nielsen estimated that Outdoor Channel had approximately 39.8
million cable, satellite and telco subscribers for May 2013. Outdoor Channel
offers programming that captures the excitement of hunting, fishing, shooting,
adventure and the Western lifestyle and can be viewed on multiple platforms
including high definition, video-on-demand, as well as on a dynamic broadband
website. Winnercomm is one of America's leading and highest quality producers
of live sporting events and sports series for cable and broadcast television.
The Company also owns and operates the SkyCam and CableCam aerial camera
systems which provide dramatic overhead camera angles for major sports events,
including college and NFL football.
Safe Harbor Statement
Certain matters discussed in this press release, with the exception of
historical matters, may be forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. In some cases,
forward-looking statements can be identified by words such as "anticipates,"
"estimates," "expects," "believes," "intends," "plans," "predicts," and
similar terms. These statements are subject to a number of risks and
uncertainties that could cause results to differ materially from those
anticipated as of the date of this release. You should understand that the
following important factors could cause outcomes to differ materially from
those expressed or implied in the forward-looking statements:
*KSE making a proposal of changes to the terms of the KSE Agreement that
would cause the InterMedia proposal to no longer constitute a Superior
*failure of the Company to terminate the KSE Agreement;
*failure of the Company to execute a merger agreement with InterMedia;
*failure of the Company stockholders to approve a merger agreement with
*failure to consummate a merger with InterMedia; and
*litigation in respect of the merger.
The Company also cautions the reader that undue reliance should not be placed
on any forward-looking statements, which speak only as of the date of this
release. The Company undertakes no duty or responsibility to update any of
these forward-looking statements to reflect events or circumstances after the
date of this report or to reflect actual outcomes.
IMPORTANT INFORMATION FOR INVESTORS AND SECURITYHOLDERS
This communication is being made in respect of a proposed business combination
involving Outdoor Channel and KSE.In connection with this proposed
transaction Outdoor Channel has filed a definitive proxy statement with the
SEC on April 11, 2013 which was mailed to Outdoor Channel stockholders on or
about April 12, 2013. The definitive proxy statement contains important
information about the proposed merger and related matters.
OUTDOOR CHANNEL URGES INVESTORS TO CAREFULLY READ IN ITS ENTIRETY THE
DEFINITIVE PROXY STATEMENT AND OTHER DOCUMENTS INCLUDED AND INCORPORATED BY
REFERENCE THEREIN BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE
Investors and security holders can obtain free copies of the definitive proxy
statement and other documents filed with the SEC by Outdoor Channel through
the web site maintained by the SEC at www.sec.gov, or through Outdoor
Channel's website at www.outdoorchannel.com.
Outdoor Channel and its respective directors, executive officers and certain
other members of management and employees may be soliciting proxies from
Outdoor Channel stockholders in favor of the merger. A description of the
interests of Outdoor Channel's directors and executive officers in Outdoor
Channel is set forth in the definitive proxy statement and the other documents
included and incorporated by reference therein.You may find information about
Outdoor Channel's executive officers and directors in its amendment to its
annual report on Form 10-K filed with the SEC on April 29, 2013. You may
obtain free copies of these documents from Outdoor Channel in the manner set
CONTACT: For Company:
Executive Vice President, Chief Operating Officer/
Chief Financial Officer
Brainerd Communicators, Inc.
Brainerd Communicators, Inc.
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