LAS VEGAS-Boyd Gaming Corp. said this week it will sell its seven-month-old South Coast casino hotel property here to Michael Gaughan, who founded of the Coast Casinos chain Boyd acquired two years ago. Locally-based Boyd says it is disappointed in the performance of the 600-room property, which did little to help a 79% drop in second-quarter net income.

The property is located five miles south of the Las Vegas Strip. It cost $583 million to develop and opened in December. One of the unique amenities is a 1,200-stall equestrian center.

The agreed upon sale price will be the net proceeds from Gaughen’s sale of his 17.7% stake in the company. At today’s closing price of $33.59, which is down nearly $3.00 from Tuesday’s close, his 15.8 million shares are worth $530.72 million. At Tuesday’s closing price, the value of the deal is $576.5 million.

The stock sale is required to occur within the next 60 days. The transaction is expected to be completed by the end of the year.

Boyd Gaming operates 19 casino entertainment properties in six states. Compared to the same period a year earlier, Boyd’s second-quarter profit fell nearly 80% to $10.2 million, or $0.11 cents per share. Revenue increased 10% to $610.9 million. Analysts on average expected income of $0.57 on sales of $623.4 million.

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