Mandalay ups its offer for WPT

10/31/2009

The Mandalay Media last-minute attempt to snatch World Poker Tour Enterprises from earlier bidder and Party Gaming subsidiary Peerless Media (see previous InfoPowa report) continued to excite press attention going into the weekend.

In what appeared to be a response to possibly counter bidding, Mandalay Media increased its $35 million cash and stock offer further on Friday. This latest offer to WPT represents a premium of approximately 61 percent over the closing price of WPT's common stock on October 26 and a premium of approximately 28 percent over the implied value of WPT's pending asset sale with Peerless.

WPT certainly appears to have the right sort of appeal for would-be purchasers; in March this year, privately held investment group Gamynia Limited made an offer for the company which was subsequently rejected after PartyGaming subsidiary Peerless Media tabled a better offer.

Under the terms of the Peerless Media proposal, WPT Enterprises would receive $12.3 million followed by an on-going 5 percent share of revenues generated from the assets.