NEW YORK (AP) -- Shares of Outdoor Channel Holdings Inc. rose in after-hours trading after the media company got a takeover bid at a 16 percent premium to its most recent stock price.
Kroenke Sports & Entertainment said late Friday that it is offering $8.75 per share cash for Outdoor Channel, which agreed in November to merge with InterMedia Outdoors Holdings LLC for $8 per share.
Outdoor Channel, based in Temecula, Calif., has nearly 26 million shares outstanding, according to FactSet. Based on that, the Kroenke offer is worth about $226.8 million.
In after-hours trading Friday, Outdoor Channel shares rose 12.6 percent, or 95 cents, to $8.50. They ended the regular session up 8 cents at $7.55. Over the past year, the stock has traded between $5.97 and $7.99.
Outdoor Channel owns and operates its namesake channel which features programming about hunting, fishing and shooting. Kroenke owns and operates Denver's Pepsi Center, among other venues. It said Outdoor Channel deemed its bid superior to the InterMedia offer and that it was prepared to open its books to Kroenke, subject to a confidentiality agreement.
Kroenke said there is no assurance that the companies will enter into a definitive agreement.
Shareholders of Outdoor Channel are scheduled to vote on the InterMedia transaction at a special meeting on March 13. Earlier this week, proxy advisory firm Institutional Shareholder Services Inc. recommended that shareholders vote for the InterMedia deal, citing in part the "expected business synergies created by the combined company." InterMedia controls the Sportsman Channel and publishes more than a dozen outdoor magazines.