
Anthony Sanfilippo, CEO of Pinnacle Entertainment: ‘ This will be a compelling transaction that 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 estate that is real trust (REIT), will get all of Pinnacle Entertainment’s real estate’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.
Beneath the terms of the deal, Pinnacle’s running product and the real home of Belterra Park Gaming & Entertainment are spun off as a separately traded public company known as OpCo, while GLPI will get the real estate assets of the remaining business, PopCo.
Pinnacle shareholders will own roughly 27 % of the combined company and 100 % of OpCo.
The enlarged group will form a powerhouse real-estate investment trust that may own 35 casino and resort facilities in 14 states, the third-largest publicly traded triple-net REIT into the world.
Pinnacle’s Achievements
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 name 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 new properties to its portfolio and essentially doubling in proportions.
‘Pinnacle’s real estate profile brings great properties to GLPI and adds one of this leading gaming operators as being a new tenant,’ said Peter Carlino, Chairman and CEO of GLPI. ‘Pinnacle’s proven history of continued operating that is improving will make GLPI even stronger as we pursue long-term growth.’
The REIT Material
A REIT is really a company that buys property through combined investment. It works such as a fund that is mutual 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 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, like the Penn National Race Course in Grantville, Pennsylvania. It currently trades on the NASDAQ.
‘ This is a transaction that is compelling 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 need the opportunity to benefit from running a bigger, more REIT that is diversified. As a premier operator of casino, resort and activity properties, Pinnacle will continue to improve its operating efficiency, expand property level 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 stock market that is largest 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 percent on Monday, after a day of panic selling led to falling rates across the board. It ended up being a conference that had a ripple effect on markets around the world, and one which could finally hurt the chances for a recovery that is smooth Macau.
The drop into the Shanghai Composite Index was 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 surprising was that the drop was not caused by a shocking news event or an especially devastating set of financial indicators. Instead, it appeared to be just another day in what has been an extremely volatile thirty days for the stock market that is chinese.
Drop Follows Government-Funded Rally
The drop comes after a 16 percent rally that started on July 8, if the government that is chinese a rescue package designed to keep stock prices afloat. But on that support no longer seemed to be there monday.
Either the federal government had stopped using actions to balance sell purchases, or they couldn’t maintain the overwhelming amount of sell offs that were using place, but whatever the main reason, it wasn’t a good day.
Along with spending about $800 billion to prop the stock market up, the Chinese government has taken a number of other steps over the past two weeks in an attempt to stop the selling trend. Short-selling was restricted, some shareholders that are large banned from selling stock, some companies stopped trading entirely, and IPOs were suspended.
The fact that some popular government rescue 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 temporary measure to see if the market could support itself or a sign of moving tactics is uncertain.
In any case, the effect had been dramatic, and didn’t stop at the Chinese borders. The market that is falling concerns that China’s growth is slowing might have been among the key causes of a drop in American stock areas early Monday morning as well, while commodity costs such as oil additionally fell on worries about worldwide growth.
Stock Market never as Critical to Economy in China
However, the impact of the stock market decline may perhaps not be as broad or sharp because it would be if a similar tumble took place in america. While tens of Chinese citizens have investments within the stock market, that’s nevertheless a small % associated with country as being a whole, and the stock market isn’t considered a leading indicator that is economic China since it is in the usa.
This means that analysts believe the effect of even a drop that is drastic the market is likely to be muted. And despite the turmoil, bond prices were actually barely impacted. But that does not mean that Macau will not feel some impact from the tumultuous currency markets.
To begin with, those who are committed to China tend to be wealthy: exactly the mainland clients that Macau gambling enterprises are searching to attract as higher-end or even VIP players. And if you have a follow-up effect on the Chinese economy as a whole, that might be a devastating blow to Macau’s video gaming industry, which https://playpokiesfree.com/indian-dreaming-slot/ is hoping that with time, the mass market can help make up for the dearth of high rollers following the Chinese government’s corruption crackdown on 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. With no doubt they’ll be keeping an eye that is close 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 was ‘very surprised’ when the bwin.party board chose to reject his Amaya-backed proposal. Now the organization 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 financial assistance of Amaya Inc.
Instead, GVC, which has a market cap just one-third of bwin’s, has nailed down funding for the proposed takeover through a $443 million secured loan from 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 no doubt that the bwin.party board likes the basic 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 Out of the Picture
Bwin.party ultimately rejected the first 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 was dismissed as no more than a ‘modest incremental premium’ by the bwin board.
‘ I was very astonished when [bwin] made that decision,’ Kenneth Alexander, leader of GVC, told London’s Financial Times on Monday. ‘888 were there and we were not quite there, 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 for an investor to fund a solo bid, truncating Amaya, hence simplifying the equation.
This new dynamic, combined with considerably sweetened pot, is possibly tempting to bwin’s shareholders.
High Stakes
Bwin, which had already recommended the 888 bid to shareholders and appeared to be going forward with the deal, had demonstrably caught wind of this rumors whenever it announced throughout 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 program the board will ponder over it against 888’s present offer.’
Bwin itself, however, might have been amazed by the scale of the bid that is new since numerous analysts speculated that GVC would struggle to enhance the money 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 might 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 great britain and Europe, failure here could result in a reinstatement of those, or similar, negotiations.
