sale

|

The Pennsylvania Gaming Control Board on Thursday signed off onthe sale, following approval of the agreement by the PennsylvaniaHorse Racing Commission a month earlier. At the same time, the PGCBrevealed it had approved a change of control of the slots operatorlicense for the Hollywood Casino at Penn National Race Course inGrantville, PA.

|

Currently held by Mountainview Thoroughbred Racing Association,a Penn National subsidiary, the license will go to PNG AcquisitionCo., the Fortress/Centerbridge JV. The license transfer entailspayment of a $2.5 million fee to the PGCB, according to a releasefrom the board. A spokesman for Penn National tells GlobeSt.comthat the slots license approval was part of the PGCB's broaderapproval of the sale to PNG.

|

"This board intends to make sure the new owners run a first-ratefacility that will generate revenue for property tax relief, thelocal hosting governments and the horse race industry, whileproviding economic development and living wage jobs in southcentral Pennsylvania," says PGCB chairman Mary DiGiacomo Colins ina news release.

|

In a prepared release from Penn National, the company reportsthat approvals for the sale agreement are pending before gamingcommissions in Illinois, Indiana, Iowa, Louisiana, Maine andMissouri. Regulators in six other states where Penn Gaming operateshave already approved the agreement, while no approval of thetransaction was required in Colorado or the Canadian province ofOntario. Including Pennsylvania, Penn National operates in 14states as well as Ontario.

|

Since consideration of the agreement remains pending before anumber of state regulatory authorities, "the company has concludedthat it is unlikely that all of the requisite regulatory approvalswill be obtained on or prior to June 15, 2008," according to therelease.

|

Under terms of the agreement, the cash payment to shareholdersof $67 per share of common stock is to be increased by $0.0149 perday if the merger does not close by June 15. However, the agreementalso allows for the expiration date to be extended by 120 days toOct. 13, with shareholders receiving written notice. Through itsspokesman, Penn National declines to comment on whether this optionwill be exercised if regulatory approvals are not obtained by June15.

|

As previously reported on GlobeSt.com, Penn Nationalshareholders approved thesale last December. Prior to the shareholder vote, the company madeseveral moves to expand itsholdings. Among the expansion moves was the $310-millionintegration of Hollywood Casino at Penn National Race Course. Inits first three months of operation following a February opening,the casino produced approximately $41 million in gross terminalrevenues on wagers of $475 million, according to figures from thePGCB. Penn National generated a gross profit of $1.03 billion inthe 12-month period ending Dec. 31, 2007, according to a companyfinancial statement, and now owns and operates 19 facilities with atotal of more than 900,000 sf of gaming floor space and 1,730 hotelrooms.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.