GLPI Acquires Pinnacle Properties in $4.74 Billion Deal

GLPI Ac<span id="more-8439"></span>quires Pinnacle Properties in $4.74 Billion Deal

Anthony Sanfilippo, CEO of Pinnacle Entertainment: ' This will be a compelling transaction that 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 estate that is real trust (REIT), will get 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 worth $4.1 billion.

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

Pinnacle investors will own roughly 27 percent of the combined company and 100 percent of OpCo.

The enlarged group will 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 opened 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 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 profile and essentially doubling in dimensions.

'Pinnacle's real estate profile brings great properties to GLPI and adds one associated with leading gaming operators as being 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 Stuff

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

But because they receive special income 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 United States, including 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 investors,' said Anthony Sanfilippo, CEO of Pinnacle Entertainment.

'In addition, Pinnacle shareholders need the opportunity 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 property level margins and pursue development opportunities that leverage the Company's proven management and development skills.'

Chinese Stock Marketplace Tumble Could Influence Macau Casinos

Asia's stock market that is largest fell 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 per cent on Monday, after a day of panic selling led to dropping rates across the board. It ended up being a meeting that had a ripple impact on markets around the world, and one which could fundamentally hurt the opportunities for a recovery that is smooth Macau.

The drop within the Shanghai Composite Index ended up being really massive. For a sense of perspective, 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 the result of a news that is shocking or a really devastating group of economic indicators. Instead, it appeared to be just a later date in what has been an ever more volatile month for the stock market that is chinese.

Drop Follows Government-Funded Rally

The fall comes after a 16 percent rally that began on July 8, if the government that is chinese a rescue package designed to help keep stock prices afloat. But on Monday, that support no longer seemed become here.

Either the federal government had stopped taking actions to balance sell requests, or they couldn't maintain the overwhelming amount of sell offs that were taking place, but whatever the reason, it wasn't a good day.

Along with spending about $800 billion to prop up the stock market, the Chinese government has brought many other actions within the last two weeks in an effort to stop the attempting to sell 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 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 short-term measure to see if the market could support itself or a sign of shifting strategies is unclear.

In any case, the end result ended up being dramatic, and don't stop during the Chinese borders. The market that is falling concerns that China's development is slowing could have been among the leading reasons for a drop in American stock areas early Monday early morning as well, while commodity rates such as oil also fell on worries about worldwide development.

Stock Market never as Critical to Economy in Asia

However, the effect of the stock market decline may not be as broad or sharp since it would be if a similar tumble took destination in the United States. While tens of Chinese citizens have investments in the stock market, that's nevertheless half the normal commission regarding the country as a entire, and the stock exchange isn't considered a leading financial indicator in Asia as it is in the usa.

This means that analysts believe the effect of even a drastic drop in the market will probably be muted. And despite the turmoil, bond prices were really barely impacted. But that does not mean that Macau won't 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 effect on the Chinese economy being a whole, that may be a devastating blow to Macau's gaming industry, which is hoping that with time, the mass market may help make up for the shortage of high rollers following Chinese government's corruption crackdown within the year that is past.

No question gaming operators with vested interests in Macau's casino economy were doing some serious knuckle-biting as the Chinese stock market news came in. With no question 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 had been 'very surprised' whenever the board thought we would reject his Amaya-backed proposal. Now the organization is back with a new offering. (Image: Tony Larkin/

GVC Holdings has pushed ahead a shock bid of almost £1 billion ($1.55 billion) for, 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 personal 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 board likes the basic idea of an 888 takeover. With various synergies between your two companies, particularly in regulated markets, that hookup would likely facilitate integration and further create cost savings 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, it was the riskier proposal because it felt.

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 decision,' 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 the decision was taken by them they took.'

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

This new dynamic, combined 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 moving forward with the deal, had plainly caught wind of the rumors whenever it announced over the weekend that it was 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 appealing, fully financed and deliverable offer then of course the board will contemplate it against 888's current offer.'

Bwin itself, however, could have been amazed by the scale of the new bid, since many analysts speculated that GVC would struggle to raise 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 could possibly be high for 888. The company only recently survived a takeover bid from Ladbrokes, and, as a period of consolidation turns into a necessity for the gambling industry in the UK and European countries, failure here could result in a reinstatement of those, or similar, negotiations.