GLPI Acquires Pinnacle Properties in $4.74 Billion Deal

GLPI Ac<span id="more-5761"></span>quires Pinnacle Properties in $4.74 Billion Deal

Anthony Sanfilippo, CEO of Pinnacle Entertainment: ‘ This may be a compelling transaction that 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 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.

Under the terms of the deal, Pinnacle’s operating product and the actual home of Belterra Park Gaming & Entertainment is spun off into a separately traded public company known as OpCo, while GLPI will obtain 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 real estate investment trust that will 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.

Today it owns 15 casino properties over the United States as well as features a 26 per cent stake in Asian Coast Development Ltd, the master and developer of the 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 profile and essentially doubling in dimensions.

‘Pinnacle’s real estate profile brings great properties to GLPI and adds one for the leading gaming operators being 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 Material

A REIT is just a ongoing company that buys property through combined investment. It works just like a shared 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 just a spin-off of Penn National Gaming and owns 21 casino and racino properties across the United States, including the Penn National Race Course in Grantville, Pennsylvania. It currently trades on the NASDAQ.

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

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

Chinese Stock Marketplace Tumble Could Impact Macau Casinos

Asia’s stock market that is largest dropped by 8.5 percent on Monday, continuing a trend of volatility. Could Macau’s casinos have the effect? (Image:

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

The drop in the Shanghai Composite Index ended up being certainly massive. For the 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 astonishing was that the fall wasn’t the effect of a shocking news event or an especially devastating pair of economic indicators. Instead, it appeared to be just another day in just what has been an extremely volatile thirty days 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 Chinese government enacted a rescue package designed to keep stock prices afloat. But on Monday, that support no further seemed to be there.

Either the us government had stopped taking actions to balance sell requests, or they couldn’t keep up with the overwhelming range sell offs that have been taking place, but whatever the reason why, it had beenn’t a good day.

Along with spending about $800 billion to prop the stock market up, the Chinese government has brought a number of other actions within the last two weeks in an effort to stop the attempting to sell trend. Short-selling was limited, some shareholders that are large banned from selling stock, some companies stopped trading entirely, and IPOs were suspended.

The undeniable fact that some government that is popular 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 temporary measure to see if the market could support it self or a sign of shifting tactics is ambiguous.

In any case, the effect had been dramatic, and didn’t stop at the Chinese borders. The market that is falling concerns that China’s growth is slowing could have been among the key factors behind a fall in American stock markets early Monday early morning as well, while commodity prices such as oil additionally fell on worries about global development.

Stock Market much less Critical to Economy in Asia

However, the impact of the stock market decline may perhaps not be as broad or sharp since it would be if a tumble that is similar place in the usa. While tens of Chinese residents have investments in the stock market, that’s still a small percentage associated with the country as being a whole, and the stock market isn’t considered a leading indicator that is economic Asia because it is in America.

Which means that analysts believe the impact of even a drop that is drastic the market is likely to 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 stock market that is tumultuous.

To begin with, those who find themselves invested in China have a tendency to be wealthy: exactly the mainland clients that Macau gambling enterprises are searching to attract as higher-end or even VIP players. And if there is a follow-up affect the Chinese economy as being a whole, that would be a devastating blow to Macau’s gaming industry, which is hoping that in the long run, the mass market will help replace the shortage of high rollers following a Chinese government’s corruption crackdown over the past year.

No doubt gaming operators with vested interests in Macau’s casino economy were doing some knuckle-biting that is serious the Chinese currency markets news arrived in. With no doubt they are going to be keeping an eye that is close 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 had been ‘very astonished’ 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 surprise bid of almost £1 billion ($1.55 billion) for, this time without the financial help of Amaya Inc.

Instead, GVC, which has a market cap just one-third of bwin’s, has nailed 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 take the case by almost $100 million, which begs the question: will 888 bite back?

There’s no doubt that the board likes the idea of an 888 takeover. With various synergies between your two businesses, particularly in regulated markets, that hookup may likely facilitate integration and produce expense 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 operation between these two suitors, it was the riskier proposal because it felt.

The GVC/Amaya offer had been £10 million more than 888’s, but this was 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, leader 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 looking an investor to fund a solo bid, truncating Amaya, hence simplifying the equation.

This brand new dynamic, combined with 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 moving forward with the deal, had plainly caught wind regarding the rumors whenever it announced over the weekend that it was nevertheless open to offers.

‘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 appealing, fully financed and deliverable offer then of program the board will contemplate it against 888’s present offer.’

Bwin itself, however, might have been amazed by the scale of the brand new bid, since many analysts speculated that GVC would struggle to improve the capital necessary to trump 888. But now, as the battle for bwin escalates into a war that is raising 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 time period of consolidation turns into a requisite for the gambling industry in great britain and European countries, failure right here could cause a reinstatement of those, or similar, negotiations.