GLPI Acquires Pinnacle Properties in $4.74 Billion Deal

GLPI Ac<span id="more-7610"></span>quires Pinnacle Properties in $4.74 Billion Deal

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Anthony Sanfilippo, CEO of Pinnacle Entertainment: ‚ This is often a transaction that is compelling unlocks the value of Pinnacle’s real estate 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 obtain 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 well worth $4.1 billion.

Beneath the terms of the deal, Pinnacle’s running product and the true property of Belterra Park Gaming & Entertainment is spun off in to a separately traded company that is public as OpCo, while GLPI will get the real estate assets of the remaining company, PopCo.

Pinnacle shareholders will own roughly 27 per cent of the combined company and 100 % of OpCo.

The group that is enlarged form a powerhouse real-estate 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.

Today it owns 15 casino properties over the US and also features a 26 % stake in Asian Coast Development Ltd, the master and developer of this Ho Tram Strip in Vietnam.

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 portfolio and essentially doubling in proportions.

‚Pinnacle’s real estate portfolio brings great properties to GLPI and adds one regarding the leading gaming operators as a brand new tenant,‘ said Peter Carlino, Chairman and CEO of GLPI. ‚Pinnacle’s proven history of continued operating that is improving will make GLPI even more powerful as we pursue long-term growth.‘

The REIT Material

A REIT is really a ongoing company that buys property through combined investment. It really works such as a fund that is mutual allowing both large 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 high yields.

GLPI, formed in November 2013, is really a spin-off of Penn National Gaming and owns 21 casino and racino properties across the United States, such as the Penn National Race Course in Grantville, Pennsylvania. It currently trades on the NASDAQ.

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

‚In addition, Pinnacle investors has the chance to benefit from having a larger, more REIT that is diversified. As a premier operator of casino, entertainment and resort properties, Pinnacle will continue to improve its working efficiency, expand home degree margins and pursue development 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 have the effect? (Image: company.financialpost.com)

The stock that is chinese declined by a stressing 8.5 % on Monday, after a day’s panic selling led to falling rates across the board. It was a meeting that had a ripple effect on markets around the world, and one that could fundamentally hurt the opportunities for a smooth data recovery in Macau.

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

That which was most surprising was that the fall wasn’t caused by a shocking news event or an especially devastating group of financial indicators. Instead, it showed up to be just another day in what has been an extremely 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, whenever Chinese government enacted a rescue package designed to keep stock prices afloat. But on that support no longer seemed to be there monday.

Either the us government had stopped using steps to balance sell sales, or they couldn’t maintain the overwhelming range sell offs that were taking place, but whatever the main reason, it wasn’t a day that is good.

Along with spending about $800 billion to prop up the stock market, the Chinese government has taken a number of other actions over the past two weeks in an endeavor to stop the offering trend. Short-selling was restricted, some big shareholders were banned from offering stock, some companies stopped trading entirely, and IPOs were suspended.

The undeniable fact that some popular federal government rescue fund acquisitions, 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 it self or a sign of shifting tactics is unclear.

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

Stock Market never as Critical to Economy in Asia

However, the effect of the stock market decline may maybe not be as broad or sharp since it would be if a tumble that is similar spot in the United States. While tens of Chinese residents have investments within the stock market, that’s nevertheless a small % of the country being a whole, and the currency markets isn’t considered a leading financial indicator in China because it is in America.

This means that analysts believe the effect of even a drop that is drastic the market may very well be muted. And despite the turmoil, bond prices were actually barely impacted. But that does not mean that Macau will not feel some impact 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 a whole, that might be a devastating blow to Macau’s video gaming industry, which is hoping that as time passes, the mass market will help replace the shortage of high rollers following a Chinese government’s corruption crackdown within the year that is past.

No doubt video gaming operators with vested interests in Macau’s casino economy were doing some knuckle-biting that is serious the Chinese currency markets news came in. And no doubt they will 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 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 pressed forward 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 down funding for the proposed takeover by way of a $443 million loan that is secured US private 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 question: will 888 bite back?

There’s no doubt that the bwin.party board likes the basic idea of an 888 takeover. With various synergies between your two organizations, particularly in regulated markets, that hookup may likely facilitate integration and create expense savings further 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 ended up being 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 board that is bwin.

‚ I was really 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 here, but we had been progressing well. We would have got there but the decision was taken by them they took.‘

Rumors began circulating week that is last GVC was seeking an investor to fund a solo bid, truncating Amaya, hence simplifying the equation.

This brand new powerful, along with the significantly 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 deal, had plainly caught wind regarding the rumors when it announced on the weekend that it had been nevertheless 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, completely financed and offer that is deliverable of course the board will consider it against 888’s present offer.‘

Bwin itself, however, could have been surprised by the scale of the brand new bid, since many analysts speculated that GVC would struggle to raise 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 might be high for 888. The company only recently survived a takeover bid from Ladbrokes, and, as a time period of consolidation becomes a requisite for the gambling industry in the UK and Europe, failure here could result in a reinstatement of those, or similar, negotiations.

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