Daryl Katz Purchase Offers and Sale
In the 2006–07 NHL season the Oilers sold out every home game for the first time, despite missing the playoffs by a substantial margin. The ownership group then reportedly received a C$145 million ($156 million in 2012 dollars) offer from local billionaire Daryl Katz for the franchise, although Nichols subsequently said the team was not for sale. Daryl Katz upped the offer to C$150 million ($161 million in 2012 dollars), but was turned down again.
On August 7, Daryl Katz made a 3rd offer for the team of C$185 million ($199 million in 2012 dollars). Cal Nichols, spokesman for the EIG, said it amounted to a hostile takeover, and had caused divisions within the EIG.
On December 13, 2007 Daryl Katz submitted a 4th formal offer to the EIG to buy the franchise. The offer was C$188 million ($202 million in 2012 dollars) to the EIG shareholders, plus another $100 million towards the building of a new arena in downtown Edmonton, as well as a new state of the art training facility located at the University of Alberta. Cal Nichols indicated that he would accept the offer for his share of the team, but that the EIG had to have the owners of 2/3 of the shares agree to the proposal. Cal Nichols resigned as chairman of the board of directors for the EIG on December 14, 2007. Assuming the position of chairman of the board was Bill Butler, a minority shareholder & real estate developer. The EIG met to decide on the bid January 21, 2008.
Before the January 21st meeting there were rumours of a rival or plan B offer led by Gary Gregg, Bill Butler, Brian Nilsson and Jakob Ambrosius. These rumours were confirmed on January 23, as the rival faction would match the Katz offer either by soliciting new shareholders or taking a loan from Scotiabank using the hockey club as collateral.
As reported on the Team 1260 on January 24, 2008 as well as in the Edmonton Journal on January 25, 3 more directors of the Edmonton Investors Group stepped down. Ron Hodgson, Neal Allen & Brian Hryniuk have resigned adding speculation that they may have accepted the Katz offer as well. The updated price per share is C$20,687 ($21,720 in 2012 dollars) & sources close to Daryl Katz said he may be willing to close the deal only having 60% of the 7492 EIG shares.
On June 18, 2008 it was reported that the sale of the Edmonton Oilers was approved to Daryl Katz for a reported C$200 million ($210 million in 2012 dollars).
Read more about this topic: Edmonton Investors Group
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