Reuters: Regulatory News: UPDATE 1-Pinnacle Entertainment to buy Ameristar Casinos for about $869 mln

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UPDATE 1-Pinnacle Entertainment to buy Ameristar Casinos for about $869 mln Dec 21st 2012, 12:49 Fri Dec 21, 2012 7:49am EST Dec 21 (Reuters) - Casino operator Pinnacle Entertainment Inc will acquire Ameristar Casinos Inc for about $869 million to expand mainly in the U.S. Midwest and South. Pinnacle said it would pay $26.50 per share in cash, representing a premium of 20 percent over Ameristar Casinos' closing price on Thursday. () Ameristar shares were trading slightly above the offer price in pre-market trading on the Nasdaq on Friday. The total value of the deal is $2.8 billion including debt of $1.9 billion and cash on hand of $116 million, Pinnacle said. "The acquisition of Ameristar's properties will complement Pinnacle's existing portfolio by adding eight casino-resorts in some of the nation's best gaming markets," Pinnacle said. Ameristar casinos are located in St. Louis, Missouri; Kansas City, Missouri; Council Bluffs, Iowa; Black Hawk, Colorado; Vicksburg, Mississippi; East Chicago, Indiana; and Jackpot, Nevada. Pinnacle owns and operates seven casinos, located in Louisiana, Missouri and Indiana, and a racetrack in Ohio. Pinnacle said it expected the acquisition to add to its free cash flow and earnings per share after the deal closes by the end of the third quarter of 2013. Goldman Sachs & Co advised Pinnacle, while Ameristar was advised by Lazard and Centerview Partners LLC. Link this Share this Digg this Email Reprints

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