
Anthony Sanfilippo, CEO of Pinnacle Entertainment: ‘ This is 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 real estate investment trust (REIT), will get all of Pinnacle Entertainment’s real-estate’s assets in an all-stock deal that values the holdings at $4.74 billion.
Pinnacle rebuffed a GLPI offer in March worth $4.1 billion.
Underneath the terms of the deal, Pinnacle’s operating unit and the actual property of Belterra Park Gaming & Entertainment will be spun off into a separately exchanged public company known as OpCo, while GLPI will obtain the real estate assets of the residual business, PopCo.
Pinnacle shareholders will own roughly 27 percent of the combined company and 100 % of OpCo.
The enlarged group will form a powerhouse property investment trust which will own 35 casino and hotel facilities in 14 states, the third-largest publicly traded triple-net REIT in the world.
Pinnacle’s Achievements
Pinnacle traces its history back to 1938, when Jack L Warner exposed the Hollywood Park Racetrack.
Today it owns 15 casino properties over the US and in addition possesses 26 percent stake in Asian Coast Development Ltd, the owner and developer of the Ho Tram Strip in Vietnam.
The company changed its name from Hollywood Park Inc to Pinnacle Entertainment when the racetrack was sold 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 profile and essentially doubling in size.
‘Pinnacle’s real estate profile brings great properties to GLPI and adds one regarding the leading gaming operators as being 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 more powerful as we pursue long-term growth.’
The REIT Stuff
A REIT is really a company that purchases property through combined investment. It really works such as for instance a fund that is mutual 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 a spin-off of Penn nationwide Gaming and owns 21 casino and racino properties across the United States, such as the Penn National Race Course in Grantville, Pennsylvania. It currently trades on the NASDAQ.
‘ This will be a transaction that is compelling unlocks the value of Pinnacle’s real-estate assets and delivers significant value to our shareholders,’ said Anthony Sanfilippo, CEO of Pinnacle Entertainment.
‘In addition, Pinnacle investors will have the opportunity to benefit from owning a larger, more REIT that is diversified. As a premier operator of casino, resort and entertainment properties, Pinnacle will stay to enhance its working efficiency, expand home degree margins and pursue development opportunities that leverage the Company’s proven management and development skills.’
Chinese Stock Marketplace Tumble Could Influence Macau Casinos
China’s largest stock market dropped by 8.5 % on Monday, continuing a trend of volatility. Could Macau’s casinos feel the effect? (Image: company.financialpost.com)
The Chinese stock market declined by a worrying 8.5 per cent on Monday, after a day of panic selling led to dropping rates across the board. It had been a conference which had a ripple effect on markets around the world, and one which could finally hurt the chances for a smooth data recovery in Macau.
The drop in the Shanghai Composite Index had been truly massive. For the sense of perspective, it was the same to something like a drop that is 1,500-point the Dow Jones Industrial Average.
The thing that was most astonishing was that the drop was not the effect of a shocking news event or a particularly devastating group of economic indicators. Instead, it appeared to be just a later date in just what has been an extremely volatile month for the stock market that is chinese.
Drop Follows Government-Funded Rally
The drop comes after a 16 percent rally that began on July 8, once the Chinese government enacted a rescue package designed to help keep stock prices afloat. But on that support no longer seemed to be there monday.
Either the us government had stopped taking actions to balance sell orders, or they couldn’t maintain the overwhelming amount of sell offs which were using place, but whatever the main reason, it ended up beingn’t a good day.
Along with spending about $800 billion to prop up the stock market, the Chinese government has brought many other steps in the last two weeks in an effort to stop the attempting to sell trend. Short-selling was restricted, some big shareholders were prohibited from selling stock, some companies stopped trading completely, and IPOs were suspended.
The fact that some government that is popular fund acquisitions, such as PetroChina, saw big dips on your day suggested that the government purchases had either slowed or stopped. Whether this was a measure that is temporary see if the market could support itself or a sign of shifting strategies is ambiguous.
The result was dramatic, and didn’t stop at the Chinese borders in any case. The dropping market and concerns that China’s growth is slowing might have been among the leading reasons for a drop in American stock areas early Monday morning as well, while commodity rates such as oil additionally fell on worries about global growth.
Stock Market much less Critical to Economy in Asia
However, the impact of the stock market decline may maybe not be as broad or sharp as it would be if a tumble that is similar spot in the us. While tens of Chinese citizens have investments within the stock market, that’s still a small percentage of the nation as a entire, and the currency markets isn’t considered a leading indicator that is economic Asia since it is in America.
This means that analysts believe the impact of even a drop that is drastic the market will be muted. And despite the turmoil, bond prices were actually barely impacted. But that does not mean that Macau will not feel some effect from the stock market that is tumultuous.
For starters, those people who are invested in China tend to be wealthy: exactly the mainland clients that Macau gambling enterprises are looking to attract as higher-end or even VIP players. And when there is a follow-up impact on the Chinese economy as being a whole, that would be a devastating blow to Macau’s gaming industry, which is hoping that as time passes, the mass market will help make up for the shortage of high rollers following the Chinese government’s corruption crackdown throughout the year that is past.
No doubt gaming operators with vested interests in Macau’s casino economy were doing some serious knuckle-biting as the Chinese stock exchange news arrived in. And no doubt they will be keeping a close eye as the trends continue steadily to unfold in coming weeks.
GVC Moves All-in for $1.5 Billion in Battle for Bwin.Party
GVC CEO Kenneth Alexander said he had been ‘very astonished’ when the bwin.party board chose to reject his Amaya-backed proposal. Now the organization has returned with an offering that is new. (Image: Tony Larkin/sbcnews.co.uk)
GVC Holdings has forced ahead a shock 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 playpokiesfree.com nailed straight down funding for the proposed takeover through a $443 million loan that is secured US personal equity group Cerberus Capital.
With the move, GVC trounces a bid from 888 Holdings that was thought to be in the case by almost $100 million, which begs the concern: will back 888 bite?
There’s without doubt that the bwin.party board likes the idea of an 888 takeover. With various synergies involving the two organizations, particularly in regulated markets, that hookup would likely facilitate integration and produce cost cost savings further 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 operation between these two suitors, because it felt it had been the riskier proposal.
The GVC/Amaya offer had been £10 million more than 888’s, but this was dismissed as no more than a ‘modest incremental premium’ by the board that is bwin.
‘ I happened to be really astonished when [bwin] made that decision,’ Kenneth Alexander, chief executive of GVC, told London’s Financial Times on Monday. ‘888 were there and we had been not quite here, but we were progressing well. We would have got there but they took the decision they took.’
Rumors began circulating week that is last GVC was looking an investor to fund a solo bid, truncating Amaya, therefore simplifying the equation.
This new powerful, along with the notably sweetened pot, could well be tempting to bwin’s shareholders.
High Stakes
Bwin, which had already recommended the 888 bid to shareholders and appeared become going forward with the offer, had demonstrably caught wind regarding the rumors when it announced within the that it was still open to offers weekend.
‘The board has suggested an offer from 888 and we are working towards getting that done,’ a Bwin spokesman said. ‘Should GVC or anyone else put forward an attractive, completely financed and offer that is deliverable of course the board will ponder over it against 888’s present offer.’
Bwin itself, however, might have been astonished by the scale of the bid that is new since numerous analysts speculated that GVC would struggle to enhance the capital necessary to trump 888. But now, as the battle for bwin escalates into a war that is raising insiders are fully expecting a counter-proposal.
And the stakes could possibly be high for 888. The company only recently survived a takeover bid from Ladbrokes, and, as a time period of consolidation becomes a necessity for the gambling industry in the UK and European countries, failure right here could cause a reinstatement of those, or similar, negotiations.
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