Anthony Sanfilippo, CEO of Pinnacle Entertainment: ‘ This is usually a compelling transaction that unlocks the value of Pinnacle’s property assets and delivers substantial value to your shareholders.’
Gaming and Leisure Properties Inc (GLPI), the gambling industry’s first estate that is real trust (REIT), will get 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 well worth $4.1 billion.
Underneath the terms of the deal, Pinnacle’s operating product and the true property of Belterra Park Gaming & Entertainment are spun off as a separately exchanged company that is public as OpCo, while GLPI will obtain the real estate assets of the remaining business, PopCo.
Pinnacle investors will own roughly 27 per cent of the combined company and 100 % of OpCo.
The enlarged group will form a powerhouse real-estate investment trust that will own 35 casino and hotel 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 started 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 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 new properties to its profile and essentially doubling in dimensions.
‘Pinnacle’s real estate profile brings great properties to GLPI and adds one for the leading gaming operators as a new tenant,’ said Peter Carlino, Chairman and CEO of GLPI. ‘Pinnacle’s proven history of continued improving operating performance will make GLPI even stronger 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 a mutual fund, allowing both large and small investors to own a shares of real estate.
But because they receive special taxation considerations, REITS can trade at higher stock market prices, and so typically offer investors yields that are high.
GLPI, formed in November 2013, is just a spin-off of Penn National Gaming and owns 21 casino and racino properties across the US, including the Penn National Race Course in Grantville, Pennsylvania. It currently trades on the NASDAQ.
‘ This is a compelling transaction that unlocks the value of Pinnacle’s real-estate assets and delivers substantial value to our investors,’ 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 activity properties, Pinnacle will stay to enhance its working efficiency, expand home level margins and pursue development opportunities that leverage the Company’s proven management and development skills.’
Chinese Stock Market Tumble Could Influence Macau Casinos
China’s stock market that is largest dropped by 8.5 percent on Monday, continuing a trend of volatility. Could Macau’s casinos have the effect? (Image: company.financialpost.com)
The stock that is chinese declined by a stressing 8.5 % on Monday, after a day of panic selling resulted in falling prices across the board. It ended up being a meeting which had a ripple impact on markets around the world, and the one that could finally hurt the chances for a recovery that is smooth Macau.
The drop within the Shanghai Composite Index had been really massive. For a sense of viewpoint, it was very same to something like a 1,500-point drop in the Dow Jones Industrial Average.
The thing that was most astonishing was that the drop wasn’t the effect of a news that is shocking or a particularly devastating set of economic indicators. Instead, it appeared to be just a later date in what has been an increasingly volatile thirty days for the Chinese stock exchange.
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 that support no longer seemed to be there monday.
Either the us government had stopped using steps to balance sell sales, or they couldn’t keep up with the overwhelming wide range of sell offs that have been taking place, but whatever the reason why, it wasn’t a good day.
Along with spending about $800 billion to prop the stock market up, the Chinese government has brought many other actions over the past two weeks in an effort to stop the selling trend. Short-selling was limited, some shareholders that are large banned from attempting to sell stock, some companies stopped trading entirely, and IPOs were suspended.
The proven fact that some government that is popular fund purchases, such as PetroChina, saw big dips on your day suggested https://playpokiesfree.com/indian-dreaming-slot/ 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 strategies is unclear.
In any case, the result had been dramatic, and don’t stop at the Chinese borders. The market that is falling concerns that China’s growth is slowing could have been among the leading factors behind a fall in American stock markets early Monday early morning as well, while commodity rates such as oil additionally fell on worries about worldwide growth.
Stock Market never as Critical to Economy in Asia
However, the impact of the stock market decline may perhaps not be as broad or sharp as it would be if a similar tumble took destination in the usa. While tens of Chinese residents have investments into the stock market, that’s nevertheless a small % of this nation as a entire, and the stock exchange isn’t considered a leading indicator that is economic China since it is in the us.
This means that analysts believe the impact of even a drop that is drastic the market will be muted. And despite the turmoil, relationship prices were actually barely impacted. But that does not mean that Macau will not feel some impact from the tumultuous stock market.
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 is a follow-up effect on the Chinese economy as a whole, that may be a devastating blow to Macau’s gaming industry, which is hoping that in the long run, the mass market can help replace the lack of high rollers after the Chinese government’s corruption crackdown within the year that is past.
No doubt gaming operators with vested interests in Macau’s casino economy were doing some knuckle-biting that is serious the Chinese currency markets news arrived in. And no question they’ll 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 had been ‘very amazed’ whenever the bwin.party board chose 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 forced forward a shock bid of almost £1 billion ($1.55 billion) for bwin.party, this time without the financial support of Amaya Inc.
Instead, GVC, with 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 take the bag by almost $100 million, which begs the question: will back 888 bite?
There is without doubt that the bwin.party board likes the basic idea of an 888 takeover. With various synergies involving the two organizations, particularly in regulated markets, that hookup would likely facilitate integration and further create cost savings down the line.
Amaya Out From the Picture
Bwin.party ultimately rejected the original 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 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 choice,’ 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 the decision was taken by them they took.’
Rumors began circulating week that is last GVC was looking for an investor to finance a solo bid, truncating Amaya, therefore simplifying the equation.
This new dynamic, combined with the notably sweetened pot, could well be tempting to bwin’s shareholders.
Bwin, which had already recommended the 888 bid to shareholders and appeared to be moving forward with the offer, had clearly caught wind associated with the rumors when it announced throughout 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 stated. ‘Should GVC or anyone else put forward an attractive, fully financed and offer that is deliverable of course the board will contemplate it against 888’s present offer.’
Bwin itself, however, might have been surprised by the scale of the new bid, since many analysts speculated that GVC would struggle to raise the money 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 period of consolidation turns into a requisite for the gambling industry in the UK and Europe, failure here could result in a reinstatement of those, or similar, negotiations.