Outdoor Channel Holdings said on Wednesday that it had accepted a $220.7 million takeover bid from Kroenke Sports and Entertainment, turning down an earlier offer from the media investor Leo Hindery Jr.
Under the terms of the bid, Kroenke will pay $8.75 a share in cash. That’s 15.9 percent higher than Outdoor Channel’s stock price on March 1, the last day before Kroenke publicly disclosed its interest in bidding.
It’s also higher than the $8 a share offered by Mr. Hindery’s firm, InterMedia.
Kroenke appeared as a bidder after controversy emerged over the earlier bid by Mr. Hindery. A major Democratic fund-raiser, Mr. Hindery had drawn scrutiny for his bid for the Outdoor Channel, known for its hunting and fishing programming.
The merger proposal by Mr. Hindery’s InterMedia Outdoors vehicle has won the donor no favors among fellow Democrats who support tighter gun-control laws. But it has also generated criticism among conservatives like Andrew Franklin, an Outdoor Channel shareholder who has publicly wondered whether Mr. Hindery would alter the tone of the television channel’s programming if he faces political pressure.
By going with Kroenke, which is run by E. Stanley Kroenke, the owner of the St. Louis Rams and the Denver Nuggets â€" and a staunch Republican â€" Outdoor Channel’s board appears set to avoid that controversy.
“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 ch! ief executive, said in a statement. “We are pleased that Kroenke Sports & Entertainment has agreed to purchase Outdoor Channel.â€
The deal with Kroenke is expected to close in the second quarter, pending approval by regulators and shareholders.
Outdoor Channel was advised by Lazard and the law firm Wilson Sonsini Goodrich & Rosati. Kroenke was advised by Allen & Company and the law firm Wachtell, Lipton, Rosen & Katz.
