GLPI Acquires Pinnacle Properties in $4.74 Billion Deal

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GLPI Ac<span id="more-22693"></span>quires Pinnacle Properties in $4.74 Billion Deal

Anthony Sanfilippo, CEO of Pinnacle Entertainment: ‘ This is often a transaction that is compelling unlocks the value of Pinnacle’s property 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 acquire 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 running unit and the actual property of Belterra Park Gaming & Entertainment will be spun off into a separately exchanged public company known as OpCo, while GLPI will acquire the real estate assets of the remaining business, PopCo.

Pinnacle investors will own roughly 27 percent of the combined business and 100 % of OpCo.

The group that is enlarged form a powerhouse property 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 started 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 associated with the gaming that is leading 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 a ongoing company that buys property through combined investment. It works such as for instance a fund that is mutual allowing both large and small investors to own a shares of real estate.

But because they receive unique income tax 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 US, including the Penn nationwide 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 substantial value to our shareholders,’ said Anthony Sanfilippo, CEO of Pinnacle Entertainment.

‘In addition, Pinnacle investors may have the opportunity to benefit from having a larger, more REIT that is diversified. 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 Marketplace Tumble Could Influence 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 worrying 8.5 percent on Monday, after a day of panic selling resulted in falling costs across the board. It was a conference that had a ripple effect on markets around the world, and one that could fundamentally hurt the chances for a recovery that is smooth Macau.

The drop within the Shanghai Composite Index was really massive. For a sense of viewpoint, it was the same to something like a 1,500-point drop in the Dow Jones Industrial Average.

What was most astonishing was that the fall wasn’t the result of a shocking news event or a really devastating pair of economic indicators. Instead, it showed up to be just a later date in just what has been an extremely volatile thirty days for the Chinese stock market.

Drop Follows Government-Funded Rally

The drop comes after a 16 percent rally that began on July 8, when the government that is chinese a rescue package designed to help keep stock prices afloat. But on that support no longer seemed to be there monday.

Either the federal government had stopped using steps to balance sell sales, or they couldn’t keep up with the overwhelming number of sell offs that have been using place, but whatever the reason why, it wasn’t a day that is good.

Along with spending about $800 billion to prop up the stock market, the Chinese government has had a great many other actions within the last two weeks in an effort to stop the selling trend. Short-selling was restricted, some large shareholders were prohibited from selling stock, some companies stopped trading totally, and IPOs were suspended.

The undeniable fact that some government that is popular fund acquisitions, such as PetroChina, saw big dips on the afternoon suggested that the government purchases had either slowed or stopped. Whether this was a short-term measure to see if the market could support itself or a sign of moving tactics is unclear.

The result was dramatic, and didn’t stop at the Chinese borders in any case. The dropping market and concerns that China’s growth is slowing might have been among the best causes of a fall in American stock areas early Monday morning as well, while commodity costs such as oil additionally fell on concerns about international development.

Stock Market much less Critical to Economy in Asia

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 the United States. While tens of Chinese residents have indian dreaming slot machine free play investments in the stock market, that’s nevertheless half the normal commission regarding the nation being a whole, and the stock market isn’t considered a leading economic indicator in Asia as it is in the us.

This means that analysts believe the effect of even a drop that is drastic the market is going to be muted. And despite the turmoil, bond prices were actually barely impacted. But that doesn’t 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 when there is a follow-up affect the Chinese economy as being a whole, that could be a devastating blow to Macau’s video gaming industry, which is hoping that in the long run, the mass market will help replace with the lack of high rollers following the Chinese government’s corruption crackdown on the previous 12 months.

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 arrived in. With no question they will be keeping an eye that is close the trends continue 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’ whenever the bwin.party board chose to reject his Amaya-backed proposal. Now the company is back with an offering that is new. (Image: Tony Larkin/sbcnews.co.uk)

GVC Holdings has pushed ahead a shock 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 straight down funding for the proposed takeover by way of 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 take the case by almost $100 million, which begs the question: will 888 bite back?

There is without doubt that the bwin.party board likes the basic idea of an 888 takeover. With various synergies between the two companies, particularly in regulated markets, that hookup would probably facilitate integration and create cost cost savings further down the line.

Amaya Out of 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 operation 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 had been dismissed as no more than a ‘modest incremental premium’ by the bwin board.

‘ I was very surprised when [bwin] made that choice,’ Kenneth Alexander, chief executive of GVC, told London’s Financial Times on Monday. ‘888 were there and we had been not quite there, but we had been 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 finance a solo bid, truncating Amaya, thus simplifying the equation.

This new dynamic, along with the considerably sweetened pot, could well be 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 deal, had demonstrably caught wind of this rumors when 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 appealing, fully financed and offer that is deliverable of course the board will ponder over it against 888’s current offer.’

Bwin itself, however, could have been amazed by the scale of the new bid, since numerous analysts speculated that GVC would struggle to enhance 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 possibly be high for 888. The company only recently survived a takeover bid from Ladbrokes, and, as a period of consolidation becomes a prerequisite for the gambling industry in great britain and European countries, failure right here could result in a reinstatement of those, or similar, negotiations.

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