Anthony Sanfilippo, CEO of Pinnacle indian dreaming slot game Entertainment: ‘ This is usually a compelling transaction that unlocks the value of Pinnacle’s real-estate assets and delivers substantial value to our shareholders.’
Gaming and Leisure Properties Inc (GLPI), the gambling industry’s first real estate investment trust (REIT), will obtain 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.
Under the terms of the deal, Pinnacle’s operating product and the real property of Belterra Park Gaming & Entertainment is spun off as a separately traded company that is public as OpCo, while GLPI will acquire the real estate assets of the remaining company, PopCo.
Pinnacle shareholders will own roughly 27 percent of the combined company and 100 % of OpCo.
The group that is enlarged form a powerhouse property investment trust that will own 35 casino and resort facilities in 14 states, the third-largest publicly traded triple-net REIT into the world.
Pinnacle traces its history back to 1938, when Jack L Warner opened 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 portfolio and essentially doubling in size.
‘Pinnacle’s real estate portfolio brings great properties to GLPI and adds one of the leading gaming operators 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 stronger as we pursue long-term growth.’
The REIT Material
A REIT is really a ongoing company that buys property through combined investment. It really works like a shared investment, allowing both large and small investors to own a shares of real estate.
But because they receive special 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 United States, such as 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 shareholders,’ said Anthony Sanfilippo, CEO of Pinnacle Entertainment.
‘In addition, Pinnacle shareholders will have the chance to benefit from running a larger, more diversified REIT. As a premier operator of casino, entertainment and resort properties, Pinnacle will stay to improve its running efficiency, expand home degree margins and pursue growth opportunities that leverage the Company’s proven administration and development skills.’
Chinese Stock Market Tumble Could Affect Macau Casinos
China’s stock market that is largest dropped by 8.5 per cent on Monday, continuing a trend of volatility. Could Macau’s casinos have the impact? (Image: company.financialpost.com)
The stock that is chinese declined by a stressing 8.5 percent on Monday, after a day’s panic selling resulted in dropping rates across the board. It had been a meeting which had a ripple impact on markets around the world, and one which could ultimately hurt the possibilities for a smooth data recovery in Macau.
The drop in the Shanghai Composite Index had been certainly massive. For a sense of perspective, it was very same 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 effect of a news that is shocking or a particularly devastating pair of economic indicators. Instead, it appeared to be just another day in just what has been an ever more volatile month 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 help keep stock prices afloat. But on Monday, that support no further seemed to be there.
Either the federal government had stopped using actions to balance sell requests, or they couldn’t keep up with the overwhelming range sell offs which were using place, but whatever the main reason, it had beenn’t a good day.
Along with spending about $800 billion to prop the stock market up, the Chinese government has had a great many other steps in the last two weeks in an endeavor to stop the selling trend. Short-selling was limited, some shareholders that are large banned from selling stock, some companies stopped trading entirely, 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 moving techniques is not clear.
In any case, the effect ended up being dramatic, and don’t stop at the Chinese borders. The dropping market and concerns that China’s development is slowing may have been among the best factors behind a drop in American stock markets early Monday morning as well, while commodity rates such as oil additionally fell on concerns about worldwide development.
Stock Market much less Critical to Economy in China
However, the effect of the stock market decline may perhaps not be as broad or sharp because it would be if a similar tumble took place in the us. While tens of Chinese citizens have investments within the stock market, that’s nevertheless half the normal commission of the country being a whole, and the currency markets isn’t considered a leading indicator that is economic Asia since it is in the us.
Which means that analysts believe the effect of even a drastic drop in the market will probably be muted. And despite the turmoil, bond prices were really barely impacted. But that doesn’t 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 if there is a follow-up affect the Chinese economy as being a whole, that might be a devastating blow to Macau’s gaming industry, which is hoping that in the long run, the mass market helps replace with the shortage of high rollers following the Chinese government’s corruption crackdown throughout the previous 12 months.
No question video gaming operators with vested interests in Macau’s casino economy were doing some serious knuckle-biting as the Chinese currency markets news came in. And no doubt they will 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 had been ‘very amazed’ whenever the bwin.party board thought we would 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 surprise bid of almost £1 billion ($1.55 billion) for bwin.party, this time without the financial help of Amaya Inc.
Instead, GVC, which has a market cap just one-third of bwin’s, has nailed straight down funding for the proposed takeover via 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 bag by almost $100 million, which begs the question: will back 888 bite?
There’s without doubt that the bwin.party board likes the idea of an 888 takeover. With various synergies between your two businesses, particularly in regulated markets, that hookup would probably facilitate integration and further create cost savings down the line.
Amaya Out 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 was £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 very surprised when [bwin] made that decision,’ Kenneth Alexander, leader 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 they took your decision 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, along 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 to be going forward with the deal, had clearly caught wind for the rumors when it announced throughout the weekend that it was still open to offers.
‘The board has suggested an offer from 888 and we are working towards getting that done,’ a Bwin spokesman stated. ‘Should GVC or anyone else put forward an appealing, fully financed and offer that is deliverable of program the board will contemplate it against 888’s current offer.’
Bwin itself, however, could have been astonished by the scale of the new bid, since many analysts speculated that GVC would struggle to enhance the money necessary to trump 888. Nevertheless 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 united kingdom and European countries, failure right here could cause a reinstatement of those, or similar, negotiations.