GLPI Acquires Pinnacle Properties in $4.74 Billion Deal
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 our 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 worth $4.1 billion.
Underneath the terms of the deal, Pinnacle’s operating unit and the actual property of Belterra Park Gaming & Entertainment is spun off in to a separately traded public company known as OpCo, while GLPI will obtain the real estate assets of the residual company, PopCo.
Pinnacle shareholders will own roughly 27 per cent of the combined business and 100 percent of OpCo.
The group that is enlarged 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 traces its history back to 1938, when Jack L Warner started the Hollywood Park Racetrack.
Today it owns 15 casino properties throughout the US and also features a 26 % stake in Asian Coast Development Ltd, the master and developer associated with the Ho Tram Strip in Vietnam.
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 size.
‘Pinnacle’s real estate profile brings great properties to GLPI and adds one of the gaming that is leading as 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 more powerful 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 fund that is mutual 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 really a spin-off of Penn nationwide Gaming and owns 21 casino and racino properties across the US, like the Penn National Race Course in Grantville, Pennsylvania. It currently trades on the NASDAQ.
‘ This will be a transaction that is compelling unlocks the value of Pinnacle’s real estate assets and delivers significant value to our investors,’ said Anthony Sanfilippo, CEO of Pinnacle Entertainment.
‘In addition, Pinnacle investors will have the chance to benefit from owning a larger, more diversified REIT. As a premier operator of casino, resort and activity properties, Pinnacle will stay to improve its running efficiency, expand property level margins and pursue growth opportunities that leverage the Company’s proven administration and development skills.’
Chinese Stock Market Tumble Could Impact Macau Casinos
Asia’s stock market that is largest fell by 8.5 % on Monday, continuing a trend of volatility. Could Macau’s casinos feel the effect? (Image: business.financialpost.com)
The Chinese stock market declined by a stressing 8.5 % on Monday, after a day of panic selling resulted in dropping prices across the board. It was a meeting that had a ripple influence on markets around the world, and the one that could fundamentally hurt the chances for a smooth data recovery in Macau.
The drop into the Shanghai Composite Index ended up being undoubtedly massive. For a sense of viewpoint, it was very 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 wasn’t the result of a shocking news event or an especially devastating pair of economic indicators. Instead, it appeared to be just another day in just 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 began on July 8, if the government that is chinese a rescue package designed to help keep stock prices afloat. But on Monday, that support no further seemed become there.
Either the us government had stopped taking actions to balance sell sales, or they couldn’t keep up with the overwhelming amount of sell offs which were using place, but whatever the main reason, it wasn’t a day that is good.
Along with spending about $800 billion to prop up the stock market, the Chinese government has taken a great many other actions within the last two weeks in an effort to stop the selling trend. Short-selling was restricted, some big shareholders were banned from attempting to sell stock, some companies stopped trading totally, and IPOs were suspended.
The undeniable fact that some popular federal government rescue fund acquisitions, 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 techniques is uncertain.
In any case, the effect had been dramatic, and did not stop at the Chinese borders. The dropping market and concerns that China’s growth is slowing may have been among the key reasons for a fall in American stock markets early Monday early morning as well, while commodity rates such as oil also fell on worries about international development.
Stock Market never as Critical to Economy in Asia
However, the effect of the stock market decline may not be as broad or sharp since it would be if a tumble that indian dreaming slot game is similar destination in the United States. While tens of Chinese citizens have investments within the stock market, that’s still a small percentage associated with the country as a entire, and the stock market isn’t considered a leading economic indicator in China since it is in America.
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, relationship prices were actually barely impacted. But that does not mean that Macau won’t feel some effect from the stock market that is tumultuous.
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 make up for the lack of high rollers following Chinese government’s corruption crackdown within the previous year.
No question video gaming operators with vested interests in Macau’s casino economy were doing some knuckle-biting that is serious the Chinese currency markets news came in. With no question they are going to be keeping a close eye as 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’ when the bwin.party board thought we would reject his Amaya-backed proposal. Now the company has returned with a new offering. (Image: Tony Larkin/sbcnews.co.uk)
GVC Holdings has pressed ahead a surprise bid of almost £1 billion ($1.55 billion) for bwin.party, this time without the financial support of Amaya Inc.
Instead, GVC, which has 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 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 idea of an 888 takeover. With various synergies involving the two organizations, particularly in regulated markets, that hookup may likely facilitate integration and further create cost savings down the line.
Amaya From 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 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 were progressing well. We would have got there but they took the decision they took.’
Rumors began circulating week that is last GVC was in search of an investor to fund a solo bid, truncating Amaya, thus simplifying the equation.
This new dynamic, combined with the notably sweetened pot, is possibly tempting to bwin’s shareholders.
Bwin, which had already recommended the 888 bid to shareholders and appeared to be going forward with the offer, had demonstrably caught wind associated with the rumors whenever it announced on 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 current offer.’
Bwin itself, however, may have been astonished by the scale of the bid that is new 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 raising war, 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 time period of consolidation turns into a prerequisite for the gambling industry in the UK and Europe, failure here you could end up a reinstatement of those, or similar, negotiations.