GLPI Acquires Pinnacle Properties in $4.74 Billion Deal

GLPI Ac<span id="more-61388"></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 real estate investment 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 worth $4.1 billion.

Under the terms of the deal, Pinnacle’s running product and the actual property of Belterra Park Gaming & Entertainment are spun off into a separately exchanged public company known as OpCo, while GLPI will get the real estate assets of the residual business, 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 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’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 profile and essentially doubling in proportions.

‘Pinnacle’s real estate portfolio brings great properties to GLPI and adds one associated with leading gaming operators as a brand 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 Material

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

But because they receive special 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 nationwide Gaming and owns 21 casino and racino properties across the US, such as the Penn nationwide Race Course in Grantville, Pennsylvania. It currently trades on the NASDAQ.

‘ This will be a compelling transaction that unlocks the worthiness of Pinnacle’s property assets and delivers substantial value to our investors,’ said Anthony Sanfilippo, CEO of Pinnacle Entertainment.

‘In addition, Pinnacle shareholders could have the opportunity to benefit from running a larger, more diversified REIT. As a premier operator of casino, resort and entertainment properties, Pinnacle will continue to boost its working efficiency, expand home degree margins and pursue growth opportunities that leverage the Company’s proven management and development skills.’

Chinese Stock Marketplace Tumble Could Impact Macau Casinos

China’s largest stock market dropped by 8.5 % on Monday, continuing a trend of volatility. Could Macau’s casinos have the impact? (Image: business.financialpost.com)

The stock that is chinese declined by a stressing 8.5 % on Monday, after a day’s panic selling resulted in falling costs across the board. It was an event which had a ripple effect on markets around the world, and the one that could ultimately hurt the chances for a recovery that is smooth Macau.

The drop within the Shanghai Composite Index was certainly 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 surprising was that the fall wasn’t caused by a shocking news event or a particularly devastating pair of financial indicators. Instead, it appeared to be just another day in exactly what has been an increasingly volatile month for the stock market that is chinese.

Drop Follows Government-Funded Rally

The drop comes after a 16 percent rally that started on July 8, whenever government that is chinese a rescue package designed to help keep stock prices afloat. But on Monday, that support no further seemed become here.

Either the us government had stopped using actions to balance sell requests, or they couldn’t keep up with the overwhelming range sell offs that were taking place, but whatever the 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 brought many other steps over the past two weeks in an endeavor to stop the selling trend. Short-selling was limited, some shareholders that are large banned from selling stock, some companies stopped trading entirely, 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 measure that is temporary see if the market could support it self or a sign of shifting tactics is uncertain.

In any case, the effect ended up being dramatic, and didn’t stop during the Chinese borders. The market that is falling concerns that China’s growth is slowing may have been among the key causes of a drop in American stock markets early Monday early morning as well, while commodity rates such as oil also fell on concerns about worldwide development.

Stock Market much less Critical to Economy in China

However, the impact of the stock market decline may perhaps not be as broad or sharp since it would be if a playpokiesfree.com tumble that is similar destination in the United States. While tens of Chinese citizens have investments in the stock market, that’s nevertheless a small % of this country being a whole, and the stock exchange isn’t considered a leading financial indicator in China as it is in the us.

This means that analysts believe the impact of even a drop that is drastic the market may very well be muted. And despite the turmoil, relationship prices were really 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 when there is a follow-up affect the Chinese economy being a whole, that could be a devastating blow to Macau’s gaming industry, which is hoping that with time, the mass market may help replace with the dearth of high rollers after the Chinese government’s corruption crackdown on the year that is past.

No question video gaming operators with vested interests in Macau’s casino economy were doing some knuckle-biting that is serious the Chinese stock market news arrived in. And no doubt they will 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 was ‘very astonished’ when the bwin.party board thought we would reject his Amaya-backed proposal. Now the business is back 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 financial support 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 be in the bag by almost $100 million, which begs the question: will back 888 bite?

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 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, because it felt it had been the riskier proposal.

The GVC/Amaya offer was £10 million more than 888’s, but this ended up being dismissed as no more than a ‘modest incremental premium’ by the bwin board.

‘ I was very astonished when [bwin] made that decision,’ Kenneth Alexander, leader 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 your choice they took.’

Rumors began circulating last week that GVC was looking for an investor to finance a solo bid, truncating Amaya, thus simplifying the equation.

This new dynamic, along with the 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 going forward with the offer, had clearly caught wind of this rumors whenever it announced within the that it was still open to offers weekend.

‘The board has recommended an offer from 888 and we are working towards getting that done,’ a Bwin spokesman stated. ‘Should GVC or anyone else put forward an attractive, fully financed and offer that is deliverable of program the board will ponder over it against 888’s present offer.’

Bwin itself, however, could have been amazed by the scale of the brand new bid, 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 period of consolidation becomes a requisite for the gambling industry in the UK and Europe, failure right here could result in a reinstatement of those, or similar, negotiations.

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