GLPI Acquires Pinnacle Properties in $4.74 Billion Deal

GLPI Ac<span id="more-1537"></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 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 acquire 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 well worth $4.1 billion.

Under the terms of the deal, Pinnacle’s operating product and the real property of Belterra Park Gaming & Entertainment is 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 shareholders will own roughly 27 percent of the combined company and 100 percent of OpCo.

The group that is enlarged form a powerhouse real-estate 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’s Achievements

Pinnacle traces its history back to 1938, when Jack L Warner launched 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 properties that are new its profile and essentially doubling in dimensions.

‘Pinnacle’s real estate portfolio brings great properties to GLPI and adds one regarding the gaming that is leading as 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 Stuff

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

But because they receive special 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 just a spin-off of Penn National 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 will be 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 has the chance to benefit from owning a bigger, more REIT that is diversified. As a premier operator of casino, entertainment and resort properties, Pinnacle will continue to enhance its running efficiency, expand property level margins and pursue development opportunities that leverage the Company’s proven administration and development skills.’

Chinese Stock Marketplace Tumble Could Influence Macau Casinos

Asia’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 effect? (Image: business.financialpost.com)

The Chinese stock market declined by a stressing 8.5 percent on Monday, after a day of panic selling resulted in falling prices across the board. It ended up being a meeting which had a ripple influence on markets around the world, and the one that could eventually hurt the chances for a recovery that is smooth Macau.

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

That which was most surprising was that the drop was not the result of a shocking news event or a really devastating group of financial indicators. Instead, it showed up to be just another day in just what has been an extremely volatile thirty days for the Chinese stock market.

Drop Follows Government-Funded Rally

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

Either the government had stopped taking steps to balance sell sales, or they couldn’t match the overwhelming wide range of sell offs that were taking place, but whatever the reason, it ended up beingn’t a good day.

Along with spending about $800 billion to prop the stock market up, the Chinese government has brought a great many other actions in the last two weeks in an effort to stop the attempting to sell 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 popular 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 moving strategies is not clear.

The result was dramatic, and didn’t stop at the Chinese borders in any case. The falling market and concerns that China’s development is slowing could have been among the best factors behind a drop in American stock markets early Monday early morning as well, while commodity prices such as oil also fell on concerns about worldwide growth.

Stock Market Not as Critical to Economy in Asia

However, the effect of the stock market decline may maybe not be as broad or sharp because it would be if a tumble that is similar indian dreaming slot machine game download spot in america. While tens of Chinese citizens have investments into the stock market, that’s still a small % associated with nation being a whole, and the stock market isn’t considered a leading indicator that is economic China as it is in America.

This means that analysts believe the impact of even a drop that is drastic the market is likely to be muted. And despite the turmoil, bond prices were really barely impacted. But that does not mean that Macau will not feel some impact from the stock market that is tumultuous.

For starters, those who find themselves committed to China tend to be wealthy: exactly the mainland clients that Macau gambling enterprises are searching to attract as higher-end or even VIP players. And when there is a follow-up effect on the Chinese economy being a whole, that would be a devastating blow to Macau’s video gaming industry, which is hoping that over time, the mass market helps make up for the dearth of high rollers following the Chinese government’s corruption crackdown over the year that is past.

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. And 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 had been ‘very amazed’ when the bwin.party board chose to 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 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 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 concern: will back 888 bite?

There is without doubt that the bwin.party board likes the basic idea of an 888 takeover. With various synergies involving the two businesses, 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 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 board that is bwin.

‘ I happened to be really astonished 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 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 trying to find an investor to fund a solo bid, truncating Amaya, thus simplifying the equation.

This new dynamic, combined with significantly sweetened pot, could well be tempting to bwin’s shareholders.

High Stakes

Bwin, which had already recommended the 888 bid to shareholders and appeared become moving forward with the deal, had clearly caught wind associated with the rumors whenever it announced over the weekend that it ended up being 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 attractive, fully financed and deliverable offer then of course the board will consider it against 888’s present offer.’

Bwin itself, however, may have been surprised by the scale of the brand new bid, since many analysts speculated that GVC would struggle to improve the capital 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 necessity for the gambling industry in the united kingdom and European countries, failure right here could result in a reinstatement of those, or similar, negotiations.

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