GLPI Acquires Pinnacle Properties in $4.74 Billion DealPaleoMD
Anthony Sanfilippo, CEO of Pinnacle Entertainment: ‘ This is usually a transaction that is compelling unlocks the value of Pinnacle’s property assets and delivers substantial value to the shareholders.’
Gaming and Leisure Properties Inc (GLPI), the gambling industry’s first owning a home 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 running unit and the true home of Belterra Park Gaming & Entertainment is going to be spun off in to a separately exchanged public company known as OpCo, while GLPI will acquire the real estate assets of the remaining business, PopCo.
Pinnacle shareholders will own roughly 27 percent of the combined business and 100 % of OpCo.
The group that is enlarged 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 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 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 profile and essentially doubling in dimensions.
‘Pinnacle’s real estate portfolio brings great properties to GLPI and adds one associated with the 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 for instance a shared fund, allowing both large and small investors to own a shares of real estate.
But because they receive unique 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 a spin-off of Penn nationwide Gaming and owns 21 casino and racino properties across the United States, such as the Penn nationwide Race Course in Grantville, Pennsylvania. It currently trades on the NASDAQ.
‘ This is a compelling transaction that unlocks the value of Pinnacle’s property assets and delivers significant value to our shareholders,’ said Anthony Sanfilippo, CEO of Pinnacle Entertainment.
‘In addition, Pinnacle shareholders need the opportunity to benefit from running a larger, more diversified REIT. As a premier operator of casino, entertainment and resort properties, Pinnacle will stay to enhance its operating efficiency, expand property degree margins and pursue development opportunities that leverage the Company’s proven management and development skills.’
Chinese Stock Marketplace Tumble Could Influence Macau Casinos
Asia’s free slot machine indian dreaming largest stock market fell by 8.5 % on Monday, continuing a trend of volatility. Could Macau’s casinos feel the impact? (Image: business.financialpost.com)
The stock that is chinese declined by a stressing 8.5 per cent on Monday, after a day’s panic selling resulted in falling prices across the board. It was a conference which had a ripple impact 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 was undoubtedly massive. For a sense of perspective, it was the same to something like a drop that is 1,500-point the Dow Jones Industrial Average.
That which was most astonishing was that the fall was not the result of a shocking news event or an especially devastating group of economic indicators. Instead, it appeared to be just another day in exactly what has been an ever more volatile thirty days 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, as soon as 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 purchases, or they couldn’t keep up with the overwhelming number of sell offs that were taking place, but whatever the reason, it wasn’t a good day.
Along with spending about $800 billion to prop up the stock market, the Chinese government has brought other actions in the last two weeks in an effort to stop the offering trend. Short-selling was restricted, some shareholders that are large banned from selling stock, some companies stopped trading completely, and IPOs were suspended.
The proven 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 temporary measure to see if the market could support it self or a sign of shifting strategies is uncertain.
In any case, the result ended up being dramatic, and don’t stop during the Chinese borders. The falling market and concerns that China’s development is slowing could have been among the key reasons for a drop in American stock markets early Monday morning as well, while commodity rates such as oil also fell on worries about international growth.
Stock Market Not as Critical to Economy in Asia
However, the impact of the stock market decline may not be as broad or sharp because it would be if a tumble that is similar spot in the us. While tens of Chinese residents have investments into the stock market, that’s nevertheless a small percentage regarding the nation as being a entire, and the currency markets isn’t considered a leading indicator that is economic China since it is in America.
This means that analysts believe the impact of even a drastic drop in the market is going to be muted. And despite the turmoil, bond prices were really barely impacted. But that doesn’t mean that Macau won’t feel some effect from the tumultuous stock market.
For one thing, those people who are dedicated to China tend to be wealthy: exactly the mainland clients that Macau casinos searching for to attract as higher-end or even VIP players. And if you have a follow-up impact on the Chinese economy being a whole, that might be a devastating blow to Macau’s video gaming industry, which is hoping that in the long run, the mass market may help make up for the lack of high rollers following the Chinese government’s corruption crackdown over the previous year.
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 doubt they are going to 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 astonished’ whenever the bwin.party board thought we would reject his Amaya-backed proposal. Now the business has returned with an offering that is new. (Image: Tony Larkin/sbcnews.co.uk)
GVC Holdings has pressed forward 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, with a market cap just one-third of bwin’s, has nailed down funding for the proposed takeover via a $443 million loan that is secured US private 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 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 probably facilitate integration and create expense cost savings further 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, because it felt it ended up being the riskier proposal.
The GVC/Amaya offer had been £10 million more than 888’s, but this had been dismissed as no more than a ‘modest incremental premium’ by the board that is bwin.
‘ 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 here, but we were progressing well. We would have got there but they took your choice they took.’
Rumors began circulating week that is last GVC was looking for an investor to finance a solo bid, truncating Amaya, hence simplifying the equation.
This 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 become going forward with the deal, had demonstrably caught wind of this rumors when 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 said. ‘Should GVC or anyone else put forward an appealing, fully financed and deliverable offer then 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 improve the money necessary to trump 888. But now, as the battle for bwin escalates into a raising war, 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 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.