GLPI Acquires Pinnacle Properties in $4.74 Billion Deal

GLPI Ac<span id="more-7069"></span>quires Pinnacle Properties in $4.74 Billion Deal

Anthony Sanfilippo, CEO of Pinnacle Entertainment: ‘ This is usually a transaction that is compelling 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 estate that is real trust (REIT), will acquire all of Pinnacle Entertainment’s property’s assets in an all-stock deal that values the holdings at $4.74 billion.

Pinnacle rebuffed a GLPI offer in March worth $4.1 billion.

Beneath the terms of the deal play indian dreaming slot machine free, Pinnacle’s operating unit and the real home of Belterra Park Gaming & Entertainment is going to be spun off in to a separately traded public company known as OpCo, while GLPI will get the real estate assets of the remaining business, PopCo.

Pinnacle investors will own roughly 27 per cent of the combined company and 100 % of OpCo.

The enlarged group will 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’s Achievements

Pinnacle traces its history back to 1938, when Jack L Warner started the Hollywood Park Racetrack.

Today it owns 15 casino properties over the US as well as features a 26 percent stake in Asian Coast Development Ltd, the master and developer associated with Ho Tram Strip in Vietnam.

The company changed its title 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 profile and essentially doubling in proportions.

‘Pinnacle’s real estate portfolio brings great properties to GLPI and adds one regarding the gaming that is leading being a new tenant,’ said Peter Carlino, Chairman and CEO of GLPI. ‘Pinnacle’s proven track record of continued operating that is improving will make GLPI even more powerful as we pursue long-term growth.’

The REIT Stuff

A REIT is a ongoing company that purchases property through combined investment. It works like a fund that is mutual allowing both big and small investors to own a shares of real estate.

But because they receive unique tax considerations, REITS can trade at higher stock market prices, and so typically offer investors high yields.

GLPI, formed in November 2013, is just a spin-off of Penn National 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 will be a compelling transaction that unlocks the worth 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 chance to benefit from having a bigger, more REIT that is diversified. As a premier operator of casino, resort and entertainment properties, Pinnacle will continue 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 Marketplace Tumble Could Impact Macau Casinos

China’s largest stock market fell by 8.5 % on Monday, continuing a trend of volatility. Could Macau’s casinos feel the effect? (Image: company.financialpost.com)

The stock that is chinese declined by a worrying 8.5 percent on Monday, after a day’s panic selling led to dropping costs across the board. It was an event which had a ripple effect on markets around the world, and one which could ultimately hurt the possibilities for a recovery that is smooth Macau.

The drop within the Shanghai Composite Index ended up being truly massive. For the sense of perspective, it was the equivalent to something like a drop that is 1,500-point the Dow Jones Industrial Average.

The thing that was most surprising was that the fall wasn’t the effect of a news that is shocking or an especially devastating group of financial indicators. Instead, it appeared to be just another day in just what has been an ever more volatile thirty days for the stock market that is chinese.

Drop Follows Government-Funded Rally

The fall comes after a 16 percent rally that began on July 8, once the government that is chinese a rescue package designed to keep stock prices afloat. But on Monday, that support no longer seemed to be here.

Either the us government had stopped taking actions to balance sell orders, or they couldn’t keep up with the overwhelming range sell offs that were using place, but whatever the main reason, it wasn’t a day that is good.

Along with spending about $800 billion to prop the stock market up, the Chinese government has taken a great many other actions in the last two weeks in an attempt to stop the offering trend. Short-selling was limited, some shareholders that are large prohibited from selling stock, some companies stopped trading entirely, and IPOs were suspended.

The undeniable fact that some popular federal 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 measure that is temporary see if the market could support itself or a sign of shifting strategies is ambiguous.

In any case, the end result had been dramatic, and did not stop at the Chinese borders. The market that is falling concerns that China’s growth is slowing may have been among the best causes of a drop in American stock areas early Monday early morning as well, while commodity costs such as oil additionally fell on concerns about worldwide growth.

Stock Market much less Critical to Economy in Asia

However, the impact of the stock market decline may maybe not be as broad or sharp as it would be if a tumble that is similar spot in the United States. While tens of Chinese residents have investments into the stock market, that’s nevertheless half the normal commission of this nation as being a whole, and the currency markets isn’t considered a leading financial indicator in China because it is in the us.

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 actually barely impacted. But that does not mean that Macau will not feel some effect 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 when there is a follow-up impact on the Chinese economy as a whole, that may be a devastating blow to Macau’s gaming industry, which is hoping that over time, the mass market may help make up for the dearth of high rollers after the Chinese government’s corruption crackdown within the past 12 months.

No doubt video gaming operators with vested interests in Macau’s casino economy were doing some serious knuckle-biting as the Chinese stock market news came in. And no question 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 was ‘very surprised’ when the bwin.party board made a decision to 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 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 secured loan from 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 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 may likely facilitate integration and create expense 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 operation between these two suitors, because it felt it was the riskier proposal.

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 choice,’ 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 the decision they took.’

Rumors began circulating last week that GVC was trying to find an investor to fund a solo bid, truncating Amaya, thus simplifying the equation.

This brand new powerful, combined with significantly 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 moving forward with the offer, had demonstrably caught wind of this rumors whenever it announced within the weekend that it was still open to offers.

‘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 consider it against 888’s present offer.’

Bwin itself, however, could have been astonished by the scale of the brand new bid, since numerous analysts speculated that GVC would struggle to improve the capital 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 period of consolidation turns into a necessity for the gambling industry in the UK and European countries, failure right here could result in a reinstatement of those, or similar, negotiations.

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