Anthony Sanfilippo, CEO of Pinnacle Entertainment: ‘ This will be a transaction that is compelling unlocks the value of Pinnacle’s real-estate assets and delivers substantial value to your shareholders.’
Gaming and Leisure Properties Inc (GLPI), the gambling industry’s first owning a home trust (REIT), will acquire all of Pinnacle Entertainment’s property’s assets in an all-stock transaction that values the holdings at $4.74 billion.
Pinnacle rebuffed a GLPI offer in March worth $4.1 billion.
Beneath the terms of the deal, Pinnacle’s operating product and the real property of Belterra Park Gaming & Entertainment is spun off as a separately exchanged public company known as OpCo, while GLPI will acquire the real estate assets of the residual company, PopCo.
Pinnacle investors will own roughly 27 % of the combined business and 100 percent of OpCo.
The enlarged group will form a powerhouse property investment trust which will own 35 casino and resort facilities in 14 states, the third-largest publicly traded triple-net REIT in the world.
Pinnacle traces its history back to 1938, when Jack L Warner exposed the Hollywood Park Racetrack.
It owns 15 casino properties across the US and also has a 26 percent stake in Asian Coast Development Ltd, the owner and developer of the Ho Tram Strip in Vietnam today.
The company changed its title from Hollywood Park Inc to Pinnacle Entertainment when the racetrack was offered to Churchill Downs in 2000.
In 2013 Pinnacle acquired Ameristar Casinos for $869 million and $1.9 billion of assumed debt, adding nine properties that are new its portfolio and essentially doubling in dimensions.
‘Pinnacle’s real estate portfolio brings great properties to GLPI and adds one associated with the gaming that is leading as a new tenant,’ said Peter Carlino, Chairman and CEO of GLPI. ‘Pinnacle’s proven track record of continued improving operating performance will make GLPI even stronger as we pursue long-term growth.’
The REIT Stuff
A REIT is a ongoing company that buys property through combined investment. It works just like a mutual fund, allowing both large and small investors to own a shares of real estate.
But because they receive unique tax considerations, REITS can trade at higher stock market prices, and so typically offer investors high yields.
GLPI, formed in November 2013, is really a spin-off of Penn nationwide Gaming and owns 21 casino and racino properties across the US, including the Penn nationwide Race Course in Grantville, Pennsylvania. It currently trades on the NASDAQ.
‘ This will be a compelling transaction that unlocks the worthiness of Pinnacle’s property assets and delivers significant value to our shareholders,’ said Anthony Sanfilippo, CEO of Pinnacle Entertainment.
‘In addition, Pinnacle shareholders may have the opportunity to benefit from running a larger, more REIT that is diversified. As a premier operator of casino, resort and entertainment properties, Pinnacle will stay to improve its running efficiency, expand home level margins and pursue development opportunities that leverage the Company’s proven management and development skills.’
Chinese Stock Marketplace Tumble Could Impact Macau Casinos
Asia’s largest stock market dropped by 8.5 percent on Monday, continuing a trend of volatility. Could Macau’s casinos feel the impact? (Image: company.financialpost.com)
The stock that is chinese declined by a worrying 8.5 percent on Monday, after a day’s panic selling led to falling rates across the board. It was an event that had a ripple effect on markets around the world, and one which could ultimately hurt the possibilities for a recovery that is smooth Macau.
The drop in the Shanghai Composite Index ended up being really massive. For a sense of viewpoint, it was the equivalent to something like a 1,500-point drop in the Dow Jones Industrial Average.
That which was most surprising was that the drop wasn’t the result of a shocking news event or a particularly devastating set of economic indicators. Instead, it appeared to be just another day in just what has been an increasingly volatile thirty days for the stock market that is chinese.
Drop Follows Government-Funded Rally
The fall comes after a 16 percent rally that started on July 8, if the Chinese government enacted a rescue package designed to keep stock prices afloat. But on Monday, that support no longer seemed become there.
Either the federal government had stopped taking actions to balance sell purchases, or they couldn’t keep up with the overwhelming number of sell offs that were using place, but whatever the main reason, it ended up beingn’t a day that is good.
Along with spending about $800 billion to prop the stock market up, the Chinese government has taken many other steps over the past two weeks in an endeavor to stop the selling trend. Short-selling was restricted, some big shareholders were banned from offering stock, some companies stopped trading totally, and IPOs were suspended.
The proven fact that some government that is popular fund purchases, such as PetroChina, saw big dips on the afternoon suggested that the government purchases had either slowed or stopped. Whether this was a short-term measure to see if the market could support itself or a sign of shifting techniques is unclear.
In any case, the effect ended up being dramatic, and did not stop during the Chinese borders. The falling market and concerns that China’s development is slowing could have been among the best causes of a fall in American stock markets early Monday morning as well, while commodity prices such as oil also fell on worries about international development.
Stock Market much less Critical to Economy in China
However, the impact of the stock market decline may not be as broad or sharp because it would be if a similar tumble took spot in america. While tens of Chinese residents have investments within the stock market, that’s nevertheless half the normal commission associated with nation as a whole, and the currency markets isn’t considered a leading economic indicator in China because it is in the us.
This means that analysts believe the impact of even a drop that is drastic the market may very well be muted. And despite the turmoil, bond prices were actually barely impacted. But that doesn’t mean that Macau will not feel some impact from the stock market that is tumultuous.
Those who are invested in China tend to be wealthy: exactly the mainland clients that Macau casinos are looking to attract as higher-end or even VIP players for one thing. And when there indian dreaming slot wins is a follow-up effect on the Chinese economy being a whole, that could be a devastating blow to Macau’s gaming industry, which is hoping that in the long run, the mass market will help make up for the lack of high rollers following the Chinese government’s corruption crackdown on the year that is past.
No doubt video gaming operators with vested interests in Macau’s casino economy were doing some serious knuckle-biting as the Chinese stock exchange news came in. With no doubt they will be keeping an eye that is close the trends continue to unfold in coming weeks.
GVC Moves All-in for $1.5 Billion in Battle for Bwin.Party
GVC CEO Kenneth Alexander said he was ‘very amazed’ when the bwin.party board made a decision to reject his Amaya-backed proposal. Now the company is back with an offering that is new. (Image: Tony Larkin/sbcnews.co.uk)
GVC Holdings has pressed forward a surprise bid of almost £1 billion ($1.55 billion) for bwin.party, this time without the assistance that is financial of Inc.
Instead, GVC, which has a market cap just one-third of bwin’s, has nailed straight down funding for the proposed takeover through a $443 million secured loan from US private equity group Cerberus Capital.
With the move, GVC trounces a bid from 888 Holdings that was thought to be in the bag by almost $100 million, which begs the question: will 888 bite back?
There’s no doubt that the bwin.party board likes the idea of an 888 takeover. With various synergies between the two organizations, particularly in regulated markets, that hookup would probably facilitate integration and further create cost savings down the line.
Amaya From the Picture
Bwin.party ultimately rejected the initial GVC/Amaya bid of £908 million ($1.41 billion), which proposed dividing the sports book and the poker procedure between these two suitors, it was the riskier proposal because it felt.
The GVC/Amaya offer had been £10 million more than 888’s, but this had been dismissed as no more than a ‘modest incremental premium’ by the board that is bwin.
‘ I was very astonished when [bwin] made that choice,’ Kenneth Alexander, chief executive of GVC, told London’s Financial Times on Monday. ‘888 were there and we had been not quite there, but we were progressing well. We would have got there but the decision was taken by them they took.’
Rumors began circulating week that is last GVC was seeking an investor to fund a solo bid, truncating Amaya, therefore simplifying the equation.
This brand new powerful, combined with the considerably sweetened pot, could well be tempting to bwin’s shareholders.
Bwin, which had already recommended the 888 bid to shareholders and appeared become moving forward with the offer, had plainly caught wind for the rumors when it announced within the that it was still open to offers weekend.
‘The board has recommended an offer from 888 and we are working towards getting that done,’ a Bwin spokesman said. ‘Should GVC or anyone else put forward an appealing, fully financed and deliverable offer then of program the board will consider it against 888’s present offer.’
Bwin itself, however, could have been surprised by the scale of the new bid, since many analysts speculated that GVC would struggle to enhance the capital necessary to trump 888. However now, as the battle for bwin escalates into a war that is raising insiders are fully expecting a counter-proposal.
And the stakes might be high for 888. The company only recently survived a takeover bid from Ladbrokes, and, as a time period of consolidation turns into a necessity for the gambling industry in the UK and European countries, failure right here could cause a reinstatement of those, or similar, negotiations.