logo
  Join        Login             Stock Quote

Ameristar Casinos (ASCA) To Be Acquired By Pinnacle Entertainment (PNK) For $26.50/Shr

 December 21, 2012 07:35 AM
 


(By Balachander) Ameristar Casinos Inc. (NASDAQ: ASCA) agreed to be acquired by Pinnacle Entertainment Inc. (NYSE: PNK) for $26.50 per share in cash.

The deal represents a premium of 20 percent to ASCA's previous closing price of $22.07.

"The acquisition of Ameristar's properties will complement Pinnacle's existing portfolio by adding eight casino-resorts in some of the nation's best gaming markets," Pinnacle said.

Las Vegas, Nevada-based Pinnacle will purchase Ameristar for a total enterprise value of $2.8 billion, including debt of $1.9 billion and cash on hand of $116 million as of September 30, 2012.

[Related -Merger Arbitrage Mondays – June 3, 2013]

The combined enterprise would have generated net revenue of $2.4 billion over the trailing 12-month period ended September 30, 2012.

Pinnacle Entertainment expect the deal to add to its earnings per share and free cash flow following the closing. It expect to achieve synergies and efficiencies of scale of at least $40 million annually.

Pinnacle operates seven casinos, located in Louisiana, Missouri, and Indiana, and a racetrack in Ohio. Pinnacle is also redeveloping River Downs in Cincinnati, Ohio into a gaming entertainment facility and owns a 26 percent stake in Asian Coast Development (Canada) Ltd. (ACDL).

The deal is expected to close by the end of the third quarter of 2013.

PNK shares, which ended at $13.35 on Thursday, added 1.12 percent in premarket trading on Friday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageSolar and Biotechnology Stocks Rally as Rational Exuberance Dominates

Solar stocks are rallying due to positive earnings and deals. Biotechnology stocks are also rallying due to read on...

article imageA Hefty Upside Surprise For February Payrolls

Private payrolls increased substantially more than expected in February, delivering an encouraging dose of read on...

article imageWarren Buffett’s Stellar Record In Defying Economic Gravity

One of the more intriguing observations in Berkshire Hathaway’s new letter to shareholders is Warren read on...

article imageDebate Around the 2015 Rate Hike Intensifies

Following Janet Yellen's Senate Banking Committee testimony, the Fed seems to be quite deliberate in read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.