The group raised its offer by $20 million, to $13.50 per share from $12 pershare, the Dallas-based restaurant chain says in a prepared statement. Three of the largest shareholders who opposed the previous offer have agreed to vote for the acquisition, the company says.
Dallas-based Renaissance Capital Group, which owns about 4.67% of Dave & Buster's outstanding shares, issued a statement backing the new offer shortly after it was made. They reserved the option of backing a higher bid for the company if one came along.
In May, Dave & Buster's agreed to be bought by the management group and Bahrain-based Investcorp. The $12 per-share offer expired early this month after about 46% of the outstanding shares not controlled by senior management had been tendered. The transaction was contingent upon 80% of those shares being tendered.
The amended merger was approved by the company's board of directors who were represented by three outside directors who are being advised by Houlihan Lokey Howard & Zukin.
The shares of Dallas-based Dave & Buster's rose on the news of the higher bid, and now trade in the low $13 per share range. The shares have gone up more than 70% in the past year.
The 20-year-old chain operates 31 high volume, large-format restaurants/entertainment complexes throughout the U.S.
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