EIG to accept $200M bid for NHL team: Source
« With him (Daryl Katz) coming in with the extra money, that was it for us »
Edmonton billionaire Daryl Katz is only a few dotted i’s and a couple of crossed t’s away from officially purchasing the NHL’s Oilers.
A source in the Edmonton Investors Group told Metro last night that Katz has increased his offer to buy the Oilers from $188-million to $200-million, making it out of the question for the EIG to raise enough money to buy out their fellow shareholders.
“The EIG won’t be attempting to raise any money now because, basically, Katz raised his offer up to about $200-million,” the source said, asking to remain unidentified. “It’s complicated, but basically (Katz’s) offer went up to about $22,000 a share and that’s a net tax equivalent of about $200-million altogether.”
The $22,000-per-share offer was not dependent on Katz acquiring 100 per cent of the company’s 7,492 shares, but the source said that could very well occur.
“With him (Katz) coming in with the extra money, that was it for us,” the EIG source said. “There’s no chance for the (Edmonton Investors) Group to raise that kind of money now. So it’s his baby and I’m sure all of us hope now that he does a good job with the Oilers and all their assets.”
The source said Katz’s purchase likely will become official this week, although he also said the deadline for closing the deal has been extended from Jan. 31 to Feb. 5.
Katz, chairman and chief executive officer of The Katz Group, one of North America’s leading drug store operators, has been pursuing the Oilers since last June when he made an initial offer of $185 million.