Outdoor Channel Holdings Inc., the owner of a cable-TV network with hunting and fishing programs, agreed to be bought by Kroenke Sports & Entertainment LLC for about $227 million, spurning an earlier offer from InterMedia Outdoors Holdings LLC.
The all-cash offer for $8.75 a share represents a 16 percent premium over Outdoor Channel’s stock price on March 1, before the bid was first disclosed, the Temecula, California-based company said today in a statement.
Kroenke outbid InterMedia, which previously entered into a merger agreement with Outdoor Channel. InterMedia had offered investors a choice of $8 cash a share, a new share of the new company or a combination of $4.46 in cash and 0.443 of a share.
“Our board of directors has unanimously determined that the proposed all-cash merger with KSE offers superior value for our stockholders,” Tom Hornish, Outdoor Channel’s chief executive officer, said today in the statement.
Outdoor Channel shares fell 1.1 percent to $8.74 at the close in New York. The stock had climbed as high as $9.21 in the past week, suggesting that investors were expecting bidding to go higher. It has risen 15 percent this year.
Closely held Kroenke, based in Denver, owns and operates the Denver Nuggets of the National Basketball Association and the Colorado Avalanche of the National Hockey League, in addition to the Pepsi Center, where both teams play, and other sports teams and venues.
Lazard served as Outdoor Channel’s financial adviser, while Wilson Sonsini Goodrich & Rosati was the legal adviser.
InterMedia had intended to create a new publicly traded company combining its Sportsman Channel and 15 magazines with Outdoor Channel.
The company said today its proposed merger was a better deal for Outdoor Channel, despite the outcome.
“Unfortunately, Outdoor Channel determined that they would prefer to take cash rather than participate in the significant combined future upside this combination provided,” InterMedia said in an e-mailed statement. “Outdoor Channel presented an attractive merger partner for us, but our first duty is to our investors and there are prices at which some deals stop making sense. ”