GLPI Acquires Pinnacle Properties in $4.74 Billion Deal

Anthony Sanfilippo, CEO of Pinnacle Entertainment: ‘ This is 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 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.

Underneath the terms of the deal, Pinnacle’s running product and the actual property of Belterra Park Gaming & Entertainment is going to be spun off in to a separately traded public company known as OpCo, while GLPI will obtain the real estate assets of the residual company, PopCo.

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

The enlarged group will form a powerhouse real-estate investment trust that will 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 launched the Hollywood Park Racetrack.

Today it owns 15 casino properties over the United States and also possesses 26 % stake in Asian Coast Development Ltd, the master and developer regarding the 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 portfolio and essentially doubling in proportions.

‘Pinnacle’s real estate profile brings great properties to GLPI and adds one associated with leading gaming operators as 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 just a ongoing company that buys property through combined investment. It really works such as a shared investment, allowing both large 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 yields that are high.

GLPI, formed in November 2013, is a spin-off of Penn National 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 transaction that is compelling unlocks the value of Pinnacle’s real estate assets and delivers significant value to our investors,’ said Anthony Sanfilippo, CEO of Pinnacle Entertainment.

‘In addition, Pinnacle investors need the chance to benefit from running a larger, more REIT that is diversified. As a premier operator of casino, entertainment and resort properties, Pinnacle will stay to enhance 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

China’s largest stock market fell by 8.5 percent on Monday, continuing a trend of volatility. Could Macau’s casinos have the impact? (Image:

The Chinese stock market declined by a stressing 8.5 % on Monday, after a day’s panic selling resulted in dropping prices across the board. It ended up being an event which had a ripple effect on markets around the world, and one that could eventually hurt the possibilities for a recovery that is smooth Macau.

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

That which was most astonishing was that the fall wasn’t the result of a news that is shocking or a really devastating pair of economic indicators. Instead, it showed up to be just another day in what has been an ever more volatile month for the stock market that is chinese.

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 Monday, that support no longer seemed become there.

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

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

The fact that some government that is popular fund purchases, such as PetroChina, saw big dips on your day suggested that the government purchases had either slowed or stopped. Whether this was a temporary measure to see if the market could support it self or a sign of shifting strategies is uncertain.

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 leading factors behind a fall in American stock markets early Monday morning as well, while commodity costs such as oil additionally fell on worries about international 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 because it would be if a tumble that is similar place in america. While tens of Chinese residents have investments in the stock market, that’s nevertheless half the normal commission of the nation being a entire, and the stock exchange isn’t considered a leading economic indicator in China as it is in the us.

Which means that analysts believe the effect 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 doesn’t mean that Macau won’t feel some effect from the tumultuous stock exchange.

For one thing, those people who are dedicated to China have a tendency to be wealthy: exactly the mainland clients that Macau casinos searching for to attract as higher-end or even VIP players. And if you have a follow-up effect on the Chinese economy being a whole, that might be a devastating blow to Macau’s video gaming industry, which is hoping that with time, the mass market may help make up for the shortage of high rollers after the Chinese government’s corruption crackdown throughout the past 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 stock exchange news arrived in. And no question they’ll be keeping a close eye as 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 amazed’ when the board thought we would reject his Amaya-backed proposal. Now the organization has returned with a new offering. (Image: Tony Larkin/

GVC Holdings has pressed ahead a shock bid of almost £1 billion ($1.55 billion) for, this time without the assistance that is financial of Inc.

Instead, GVC, which has 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 maintain the bag by almost $100 million, which begs the concern: will 888 bite back?

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

Amaya From the Picture ultimately rejected the initial 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 was the riskier proposal.

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

‘ I happened to be 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 there, but we were progressing well. We would have got there but they took the decision they took.’

Rumors began circulating the other day that GVC was looking an investor to finance a solo bid, truncating Amaya, therefore simplifying the equation.

This new powerful, along with the notably 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 going forward with the offer, had clearly caught wind for the rumors whenever it announced over the weekend that it ended up being still open to offers.

‘The board has suggested 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 deliverable offer then of program the board will contemplate 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 raise the money necessary to trump 888. But now, as the battle for bwin escalates into a raising war, insiders are fully expecting a counter-proposal.

And the stakes could be high for 888. The company only recently survived a takeover bid from Ladbrokes, and, as a time 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.



  1. この記事へのコメントはありません。

  1. この記事へのトラックバックはありません。