Station Casinos Las Vegas gaming company is accepting a buyout bid from Fertitta Colony Partners for $5.4 billion or $90 per share. This buyout also includes the repayment of $3.5 billion of debt, making the total real estate deal worth $8.8 billion.
While a private equity group involving the founding family has increased its offer to take Station Casinos private, industry analysts say a follow-up bid that might drive the price higher is unlikely to come.
Station has 30 business days remaining to solicit additional proposals from competing buyout bidders.
The current bid is being placed by a private equity partnership involving Los Angeles-based Colony Capital and Station Casinos Chairman and CEO Frank Fertitta III, Lorenzo Fertitta, president, and their sister, Delise Sartini, and Blake her husband.
Affiliates of JPMorgan Chase and Deutsche Bank are financing the transaction. Colony Capital currently owns the Las Vegas Hilton and other gaming properties.
Richard Clayton, research director for the Washington, D.C.-based CtW Investment Group, also felt that an outside bid that does not include the Fertittas is unlikely.
If the deal is accepted and Station Casinos goes private, the company will join Harrah’s Entertainment Las Vegas casino operator. Harrah’s accepted a $17.1 billion offer from a joint venture by private equity firms Apollo Management and Texas Pacific Group.
On December 4, 2006 there was an initial $82 per share offer. Some shareholders found the offer too low.
Station Casinos Las Vegas operates 16 properties in Southern Nevada real estate, including, Red Rock Casino Las Vegas, with additional 199 acres in four undeveloped parcels. It owns three additional parcels in Reno covering 192 acres.
Stations owns Las Vegas casinos on 421 acres locally and is in another Greenspun Corp. 50-50 partnership on the 40-acre Green Valley Ranch Resort in Henderson, NV.
Station Casinos also entered an operating agreement last December with Fisher Bros. from New York combining 52 acres of land behind Palace Station for future master-plan real estate development.
Station Casinos Las Vegas gaming company buyout bid for $5.4 billion.