Click to play at Crystal Palace Online Casino
/News/

PBL and Macquarie Team Up to Buy 9 Canadian Casinos for 1.37 Billion CAD

On April 4, 2007, Publishing and Broadcasting Ltd. from Australia collaborated with Macquarie Bank Ltd. to buy out a total of 9 casinos in Canada for about $1.37 billion CAD, expanding their casino gambling reach in the North American market.

PBL, which is owned by James Packer, the richest man in Australia and Macquarie, an investment bank, commented that they had agreed to buy out the Gateway Casinos Income Fund of Canada for about $886 million. The Gateway Casinos Income Fund is one of the biggest casino owners in Canada.

The new partnership would also buyout the Gateway Casino assets and the business' half share in the private casino business, which will bring the total amount of the buyout to about 1.37 billion CAD. The buyout deal has sent the stocks of Gateway up about 25.6%. Dave Gadhia, the Gateway Chief Executive, told their shareholders that they should back the deal, commenting that it offered a lot of investors the chance to join this good business venture.

PBL has around $3 billion to spend in other business ventures after selling almost half of their company assets in a partnership with the CVC Asia Pacific in 2006. They intend to make some international acquisitions with the money.

The CEO of Publishing and Broadcasting Ltd. Gaming, Rowen Craigie, said that they see the acquisition of Gateway Casinos as a good strategic move on their part to get a foothold in the North American Gaming Sector. On Macquarie's part, it is the bank's second venture after a triumphant buyout of Talarius PLC with Tattersall's, an Australian gaming company.

The PBL-Macquarie partnership paid $25.26 per share of Gateway. The offer is subjected to certain conditions like 2/3 of the shareholders accepting the deal. It is also subjected to regulatory approval by British Columbia and Alberta.

Both PBL and Macquarie announced that they will contribute about 195 million CAD in equity funds for the joint venture together with the external debt of about 975 million CAD.

The PBL also has a joint partnership with Hong Kong firm Melco International Development Ltd., which plans to build 3 casinos in Macau. The shares of Macquarie were about 2.1% higher at 84.18 AUD while Publishing and Broadcasting Ltd. added about 1.8% to their shares or 20.21 AUD.

 

Tuesday, April 17 , 2007
Victor Copeland