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Pinnacle's shareholders will receive $20.00 in cash and 0.42
shares of Penn National common stock for each Pinnacle share.
According to Reuters calculations, the $32.47 per share offer
represents a premium of 48.5 percent to Pinnacle's share close
on Oct. 4, a day before the Wall Street Journal first reported
on the merger talks.
After the deal, Penn National will operate a combined 41
properties with about 53,500 slots, 1,300 tables and 8,300 hotel
rooms. Pinnacle owns and operates 16 gaming and entertainment
facilities in 11 jurisdictions across the United States.
Penn National said Boyd Gaming Corp <BYD.N> would buy four of
Pinnacle's assets for $575 million in cash.
The Pinnacle deal is expected to generate $100 million in annual
run-rate cost savings and would add to Penn National's free cash
flow in the first year.
After the deal, Penn National will own 78 percent of the
combined company, while Pinnacle will own the rest.
Goldman Sachs was the lead financial adviser and BofA Merrill
Lynch was the financial adviser to Penn National. J.P. Morgan
was advising Pinnacle.
(Reporting by Arunima Banerjee in Bengaluru; Editing by Maju
Samuel)
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