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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 the shareholders.’
Gaming and Leisure Properties Inc (GLPI), the gambling industry’s first real estate investment 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 well worth $4.1 billion.
Underneath the terms of the deal, Pinnacle’s operating unit and the real property of Belterra Park Gaming & Entertainment are going to be spun off in to a separately traded public company known as OpCo, while GLPI will acquire the real estate assets of the remaining business, PopCo.
Pinnacle shareholders will own roughly 27 % of the combined business and 100 % of OpCo.
The group that is enlarged form a powerhouse real estate investment trust that may 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 started the Hollywood Park Racetrack.
It owns 15 casino properties across the US and also has a 26 percent stake in aristocrat indian dreaming slot machine 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 of the gaming that is leading being a brand 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 buys property through combined investment. It works such as for instance a fund that is mutual allowing both big 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 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 United States, including the Penn National Race Course in Grantville, Pennsylvania. It currently trades on the NASDAQ.
‘ This is a compelling transaction that unlocks the worthiness of Pinnacle’s real estate assets and delivers significant value to our shareholders,’ said Anthony Sanfilippo, CEO of Pinnacle Entertainment.
‘In addition, Pinnacle investors 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 continue to boost its running efficiency, expand property level margins and pursue growth opportunities that leverage the Company’s proven management and development skills.’
Chinese Stock Market Tumble Could Impact Macau Casinos
China’s largest stock market fell by 8.5 percent on Monday, continuing a trend of volatility. Could Macau’s casinos have the effect? (Image: company.financialpost.com)
The Chinese stock market declined by a stressing 8.5 per cent on Monday, after a day of panic selling led to dropping costs across the board. It had been a conference which had a ripple influence on markets around the world, and the one that could eventually hurt the chances for a recovery that is smooth 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 surprising was that the drop wasn’t the result of a shocking news event or a really devastating set of economic indicators. Instead, it appeared to be just another day in what has been an increasingly volatile thirty days for the Chinese stock market.
Drop Follows Government-Funded Rally
The drop comes after a 16 percent rally that started on July 8, whenever Chinese government enacted a rescue package designed to help keep stock prices afloat. But on Monday, that support no further seemed to be there.
Either the federal government had stopped taking actions to balance sell sales, or they couldn’t maintain the overwhelming amount of sell offs which were taking place, but whatever the 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 had many other actions over the past two weeks in an endeavor to stop the attempting to sell trend. Short-selling was limited, some shareholders that are large banned from selling stock, some companies stopped trading entirely, and IPOs were suspended.
The undeniable fact that some government that is popular fund purchases, such as PetroChina, saw big dips on the day suggested that the government purchases had either slowed or stopped. Whether this was a short-term measure to see if the market could support it self or a sign of moving tactics is ambiguous.
In any case, the effect had been dramatic, and don’t stop during the Chinese borders. The dropping market and concerns that China’s development is slowing could have been among the leading causes of a fall in American stock areas early Monday morning as well, while commodity costs such as oil additionally fell on concerns about worldwide growth.
Stock Market Not as Critical to Economy in China
However, the impact of the stock market decline may maybe not be as broad or sharp because it would be if a tumble that is similar destination in the United States. While tens of Chinese residents have investments in the stock market, that’s still a small percentage of the nation as a entire, and the stock market isn’t considered a leading financial indicator in Asia as it is in the us.
Which means that analysts believe the impact of even a drastic drop in the market will be muted. And despite the turmoil, relationship prices were really barely impacted. But that doesn’t mean that Macau will not feel some impact from the tumultuous stock exchange.
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 if there is a follow-up affect the Chinese economy as a whole, that might be a devastating blow to Macau’s video gaming industry, which is hoping that over time, the mass market helps replace with the shortage of high rollers after the Chinese government’s corruption crackdown on the previous 12 months.
No question gaming operators with vested interests in Macau’s casino economy were doing some serious knuckle-biting as the Chinese currency markets news arrived 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 surprised’ whenever the bwin.party board made a decision to reject his Amaya-backed proposal. Now the business has returned with a new offering. (Image: Tony Larkin/sbcnews.co.uk)
GVC Holdings has pushed ahead a shock bid of almost £1 billion ($1.55 billion) for bwin.party, this time without the financial assistance of Amaya Inc.
Instead, GVC, that includes a market cap just one-third of bwin’s, has nailed straight down funding for the proposed takeover by way of 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 888 bite back?
There’s without doubt that the bwin.party board likes the idea of an 888 takeover. With various synergies involving the two businesses, particularly in regulated markets, that hookup would likely facilitate integration and further create cost savings down the line.
Amaya Out of 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 was £10 million more than 888’s, but this ended up being dismissed as no more than a ‘modest incremental premium’ by the bwin board.
‘ I happened to be very surprised 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 had been progressing well. We would have got there but they took your choice they took.’
Rumors began circulating week that is last GVC was seeking an investor to finance a solo bid, truncating Amaya, hence simplifying the equation.
This new powerful, combined with the notably sweetened pot, is possibly tempting to bwin’s shareholders.
High Stakes
Bwin, which had already recommended the 888 bid to shareholders and appeared become going forward with the deal, had plainly caught wind of this rumors whenever it announced over 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 deliverable offer then of program the board will consider it against 888’s current offer.’
Bwin itself, however, may have been surprised by the scale of the bid that is new since many analysts speculated that GVC would struggle to improve 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 could 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 European countries, failure right here could result in a reinstatement of those, or similar, negotiations.
