Kroenke Sports wrestles Outdoor Channel from InterMedia

Wed Mar 13, 2013 11:23am EDT

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(Reuters) - Cable network Outdoor Channel Holdings Inc agreed to be acquired by Kroenke Sports & Entertainment LLC for about $8.75 per share in cash, nearly four months after it accepted an $8.00 offer from Leo Hindery's InterMedia Outdoors Holdings LLC.

Outdoor Channel shares were down 1.4 percent at $8.72 on the Nasdaq in early trading on Wednesday.

The offer from Kroenke Sports, the owner of the Denver Nuggets basketball team and Colorado Avalanche hockey team, values Outdoor Channel at about $227 million.

Outdoor Channel, which features programming for hunters and other outdoor enthusiasts, said on March 4 it received an unsolicited offer from Kroenke Sports, which was followed by a definitive bid two days later.

Kroenke Sports is owned by Stan Kroenke, who has a majority stake in Arsenal Football Club.

Outdoor Channel announced on November 16 that it had agreed to merge with InterMedia Outdoors Holdings LLC in a cash-and-stock deal valued at roughly $208 million.

InterMedia is controlled by private equity investment fund InterMedia Partners VII, founded by cable veteran Leo Hindery.

Outdoor said on Wednesday it paid InterMedia a $6.5 million termination fee and it expects the deal with Kroenke Sports to be completed in the second quarter.

(Reporting by Supantha Mukherjee and Sruthi Ramakrishnan in Bangalore; Editing by Joyjeet Das)

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