Search
 

Penn Gaming, JV Call Off $9B Merger

WYOMISSING, PA-Citing regulatory hurdles, Penn National Gaming and a Fortress/Centerbridge JV scrap plans for an $8.9-billion deal to take the company private.

By Paul Bubny | Updated on July 03, 2008

WYOMISSING, PA—The $8.9-billion sale of locally-based Penn National Gaming to a joint venture of Fortress Investment Group and Centerbridge Partners is off. Penn National and the JV, PNG Acquisition Co., revealed Thursday morning that they were terminating the merger agreement, citing uncertainty in obtaining the remaining regulatory approvals among other factors.

In connection with the termination of the merger agreement, Penn National will receive nearly $1.48 billion, including a $225-million cash termination fee and the purchase of $1.25 billion of Penn National preferred stock by the JV and its equity partners, according to a prepared release. A non-refundable deposit of $700 million was to be wired to Penn National today, according to the release, followed on July 18 by a payment of $775 million to the escrow agent upon the issuance of Series B redeemable preferred stock.

“Based on discussions between Penn National Gaming and PNG, it became apparent to Penn National and its board of directors that the proposed merger transaction would not be completed without significant and lengthy litigation which is inherently unpredictable,” Penn National says in the release. “Further, it also became apparent to the company and its board that a re-negotiated, reduced purchase price was not a viable option.”

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

Once you are an ALM digital member, you’ll receive:

  • 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

*May exclude premium content
Already have an account?

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.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.