GLPI Acquires 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 the shareholders.’
Gaming and Leisure Properties Inc (GLPI), the gambling industry’s first owning a home trust (REIT), will get all of Pinnacle Entertainment’s real-estate’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, Pinnacle’s operating product and the real home of Belterra Park Gaming & Entertainment is going to be spun off as a separately exchanged public company known as OpCo, while GLPI will acquire the real estate assets of the residual company, PopCo.
Pinnacle investors will own roughly 27 percent of the combined business and 100 percent of OpCo.
The group that is enlarged form a powerhouse property investment trust that may 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 launched the Hollywood Park Racetrack.
Today it owns 15 casino properties over the US as well as has a 26 % stake in Asian Coast Development Ltd, the dog owner and developer for 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 new properties to its portfolio and essentially doubling in proportions.
‘Pinnacle’s real estate portfolio 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 history of continued improving operating performance will make GLPI even stronger as we pursue long-term growth.’
The REIT Material
A REIT is a company that buys property through combined investment. It really works just like a mutual fund, allowing both big 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 United States, like 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 real-estate assets and delivers substantial value to our investors,’ said Anthony Sanfilippo, CEO of Pinnacle Entertainment.
‘In addition, Pinnacle investors may have the chance to benefit from owning a bigger, more REIT that is diversified. As a premier operator of casino, resort and activity properties, Pinnacle will continue to improve its working efficiency, expand home 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 largest stock market dropped by 8.5 % on Monday, continuing a trend of volatility. Could Macau’s casinos feel the impact? (Image: business.financialpost.com)
The Chinese stock market declined by a worrying 8.5 percent on Monday, after a day’s https://playpokiesfree.com/indian-dreaming-slot/ panic selling resulted in dropping prices across the board. It had been a conference that had a ripple effect on markets around the world, and one which could eventually hurt the chances for a recovery that is smooth Macau.
The drop within the Shanghai Composite Index was 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.
What was most astonishing was that the drop wasn’t caused by a shocking news event or a really devastating pair of economic indicators. Instead, it appeared to be just a later date 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 started on July 8, as soon as 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 requests, or they couldn’t match the overwhelming number of sell offs that have been taking place, but whatever the reason, it had beenn’t a day that is good.
Along with spending about $800 billion to prop the stock market up, the Chinese government has had a great many other actions over the past two weeks in an effort to stop the selling trend. Short-selling was restricted, some shareholders that are large banned from selling stock, some companies stopped trading totally, and IPOs were suspended.
The proven fact that some popular government rescue fund purchases, such as PetroChina, saw big dips on the afternoon suggested that the government purchases had either slowed or stopped. Whether this was a temporary measure to see if the market could support itself or a sign of moving techniques is ambiguous.
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 could have been among the best causes of a drop in American stock markets early Monday morning as well, while commodity rates such as oil also fell on worries about worldwide development.
Stock Market much less Critical to Economy in China
However, the effect of the stock market decline may maybe not be as broad or sharp as it would be if a tumble that is similar destination in america. While tens of Chinese residents have investments in the stock market, that’s nevertheless half the normal commission associated with country as a whole, 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 will probably 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 tumultuous currency markets.
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 impact on the Chinese economy being a whole, that could be a devastating blow to Macau’s gaming industry, which is hoping that in the long run, the mass market can help make up for the lack of high rollers following the Chinese government’s corruption crackdown throughout the previous year.
No question gaming operators with vested interests in Macau’s casino economy were doing some knuckle-biting that is serious the Chinese stock exchange news came in. With no question they are going to 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 astonished’ 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 ahead 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, that includes a market cap just one-third of bwin’s, has nailed straight down funding for the proposed takeover through 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 bag by almost $100 million, which begs the concern: will 888 bite back?
There’s without doubt that the bwin.party board likes the basic idea of an 888 takeover. With various synergies between your two companies, particularly in regulated markets, that hookup would probably facilitate integration and further create cost savings 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 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 were not quite there, but we were progressing well. We would have got there but they took your choice they took.’
Rumors began circulating last week that GVC was looking for an investor to fund a solo bid, truncating Amaya, hence simplifying the equation.
This new dynamic, combined with considerably sweetened pot, is possibly tempting to bwin’s shareholders.
Bwin, which had already recommended the 888 bid to shareholders and appeared become going forward with the deal, had obviously caught wind of the rumors when it announced over the weekend that it had been still open to offers.
‘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, fully financed and offer that is deliverable of course the board will consider it against 888’s current offer.’
Bwin itself, however, might have been astonished by the scale of the bid that is new since numerous analysts speculated that GVC would struggle to improve the money necessary to trump 888. However 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 time period of consolidation becomes a necessity for the gambling industry in the united kingdom and European countries, failure right here you could end up a reinstatement of those, or similar, negotiations.