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Posted on: December 29, 2020, 10:38h.
Final up to date on: December 29, 2020, 11:21h.
Todd Shriber Learn Extra
Tilman Fertitta’s Golden Nugget On-line Gaming will make its debut as a standalone publicly traded entity on Wednesday, Dec. 30, launching on the Nasdaq below the ticker “GNOG.” That’s after Landcadia Holdings II, Inc. (NASDAQ:LCA) traders voted to approve a merger between the 2 corporations.
Billionaire businessman Tilman Fertitta. Traders in his Landcadia SPAC lastly voted to merge with Golden Nugget On-line Gaming. (Picture: Houston Enterprise Journal)
Lancadia didn’t garner sufficient votes for the mixture at a beforehand scheduled digital assembly on Dec. 18. Landcadia, a particular function acquisition firm (SPAC) managed by Fertitta and funding financial institution Jefferies, adjourned that convention. It then known as a particular shareholders assembly, which befell at this time.
Citing an investor base that’s 70 p.c retail, a gaggle that usually doesn’t pay a lot consideration to company votes, the SPAC amended its buy settlement with GNOG. It allowed a easy majority of attendees at at this time’s assembly to vote in favor of the merger to maneuver it ahead, somewhat than greater than half of the general shareholder depend.
The technique labored, as at this time’s digital assembly lasted simply over six minutes, with attendees voting overwhelmingly in favor of the merger. An official tally will likely be revealed in a regulatory submitting with the Securities and Trade Fee (SEC).
Say Hey to GNOG
The late June announcement that Landcadia would try to merge with Golden Nugget On-line offered the iGaming operator an avenue to go public. It was anticipated the transaction can be wrapped up within the third quarter.
Nonetheless, the coronavirus pandemic acquired in the way in which, delaying the New Jersey On line casino Management Fee’s (CCC) capacity to weigh-in on the matter. That approval, which was needed as a result of the Backyard State is at the moment GNOG’s greatest market, was granted final month.
Even with the hurdles created by the pandemic and the necessity for a second shareholder assembly, the time from deal announcement to completion was six months. That highlights why so many corporations in 2020 are choosing transactions with blank-check companies over the normal preliminary public providing (IPO) course of, which might take a yr or extra, in some situations.
The merger values GNOG at $745 million, or 6.1x subsequent yr’s estimated income of $122 income. Landcadia is assuming $150 million of the goal’s debt, and it’s anticipated that when the net gaming agency debuts tomorrow, it would accomplish that with a market capitalization of round $700 million and $80 million of money on its steadiness sheet.
SPAC Fever in Gaming Business
SPAC mania is one in every of 2020’s most distinguished monetary market themes and the gaming enterprise is collaborating within the fervor.
In April, each day fantasy sports activities (DFS) supplier and on-line sports activities guide operator DraftKings (NASDAQ:DKNG) went public following a reverse merger with a blank-check entity. Earlier this month, cell video games supplier Skillz Inc. (NYSE:SKLZ) debuted following a SPAC marriage.
Subsequent yr may very well be brisk on the blank-check/gaming deal entrance. A slew of SPACs went public this yr declaring curiosity in on-line gaming and sports activities wagering property.
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