Jacobs is offering $11 per share for all shares he doesn't own. The deal is good until March 15. He is the largest single shareholder, owning about a third of the outstanding shares. Black Hawk Gaming owns and operates the Gilpin Hotel Casino and is 75% owner of operator of the Lodge Casino, both in Black Hawk, a mountain community west of Golden where limited stakes gambling is allowed.
The company has about 1,875 gaming devices under management, making it the largest Colorado-based gaming operator. It had booked $93.2 million in revenues in 200 and $5.5 million in net profits last year. It employs about 1,00 workers.
Black Hawk Gaming had slashed expenses by $1.5 million in the fourth quarter, but revenues dropped $2.4 million because of competition. Last year, the company paid $26.5 million for the Gold Dust West Casino in Reno, NV.
Jacobs' offer is a 68% premium to its closing price. The day after the offer was announced, its stock had jumped 48% to $9.75 per share. It has traded as low as $5.50 per share during the past year. Jacobs believes the stock is under-valued, which is one of the reasons he wants to take it private.
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