Twin River currently functions as a private firm. The proposed deal will see the operator change into a publicly traded performance together with properties in Rhode Island, Mississippi, Colorado, and Delaware.
The transaction will involve stockholders in Dover Downs exchanging their stock in the company for common shares in Twin River, which will represent around 7.225% in the joint business once their consolidation is complete, the two firms said in a joint statement Sunday.
Being a privately held operation, Twin River will have to register its shares with the US Securities and Exchange Commission and to list them on the New York Stock Exchange or the NASDAQ Stock Market.
The closure of the deal is subject to regulatory approvals and relevant closing conditions. It’s yet to be declared while the transaction is anticipated to be finished.
Commenting on the Sunday statement, Dover Downs President and CEO Denis McGlynn stated that joining forces with Twin River will be transformational because of his firm . The executive further elaborated that the deal will assist Dover Downs invest in its people and facilities, grow its business and be a more successful competitor in the changing gambling industry landscape.
Twin River Executive Chairman John E. Taylor, Jr. added that they anticipate to understand numerous benefits from the deal, as Dover Downs is experienced not just in the land-based casino area but also in sports betting. The US Supreme Court raised earlier this year a longstanding ban online sports betting which unleashed a tide of legislative changes across individual states to permit for the provision of that form of service.
Rhode Island, among Twin River’s main niches, legalized sports betting last month and the firm will likely take advantage of the chance to enter the sports betting field.
Twin River is currently building the Twin River Tiverton Casino complex in Tiverton, Rhode Island. The house is projected to open doors on September 1, a month earlier than previously scheduled. It was announced recently that the complex would be permitted to offer gaming services around the clock. Twin River has transferred the license of its now-shuttered Newport Grand home to run gaming in its brand new property.
Consolidation Wave in America
News about Twin River and Dover Downs joining forces arrive amid a wave of merger and acquisition prices in the US brick-and-mortar casino space. Las Vegas giant has just obtained regulatory clearance and finished the acquisition of two Indiana possessions in a $1.7 billion deal.
Gambling firms Penn National Gaming and Pinnacle Entertainment announced a projected $2.8-billion trade last December and are anticipating additional regulatory approvals and closure of related conditions to complete their merger. The firms have recently received approval from the Louisiana Gaming Control Board and the Ohio Casino Control Commission.
Including the above two regulators, Penn National and Pinnacle have now obtained blessings from eight regulatory bodies in connection to their deal. Shareholders of both companies approved their planned mix back in March.
It may be stated that the collection of merger and acquisition prices in recent years have been unleashed by firms looking to extend their geographical existence, diversify their companies and capitalize on the legalization of brick-and-mortar casino gaming in many states, the growing online gaming legalization buzz, and now the legalization of gambling betting over multiple nations .
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