Merger between Lakes and Golden Gaming will produce new publicly traded company – Golden Entertainment Inc.
Golden Gaming and Lakes Entertainment Inc. have revealed plans to team up in order to create a new publicly traded casino company. The new company, named Golden Entertainment Inc., will boast 9,250 slot machines, providing mobile casino gambling entertainment to punters, as well as video lottery terminals in 4 casinos, several taverns and more than 600 other venues, spread over and Maryland and Nevada.
The deal, which should be completed by end of this year, will have Lakes shares being valued at $9.57 a share, a premium of about 37% to the company’s closing price last Friday. Financial Chief, Tim Cop of Lakes Entertainment, will stay on as a board member and consultant. Blake L. Sartini, current chief executive of Golden Gaming, will become the chairman and CEO of Golden Entertainment.
Lakes’ chairman will act as consultant for Golden Entertainment Inc
Shareholders of Lakes, which operates out of Maryland, will have around 64.3% of shares once merger is finalized, as Golden Entertainment Inc. is expected to have pro-forma net revenue of $348.1 million this year. Lyle Berman, CEO and Chairman of Lakes, also remaining a board member, will sign a three-year package as consultant to the new company.
Lakes Entertainment Inc. develops, finances, manages and owns casino properties such as the Rocky Gap segment which harbors a hotel, gaming amenities and an event and conference center. Golden Gaming is Nevada’s largest slot route operator, having over 7,100 machines, accorded under US gambling laws, and is available in around 600 locations throughout Nevada.