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US – Full House says Affinity’s takeover offer is too low

By - 23 October 2018

Z Capital Partners, a leading alternative asset manager of private equity and credit funds, and its affiliate casino group, Affinity Gaming want to buy Full House Resorts, a small publicly-traded Las Vegas-based casino company for $132.5m.

Full House, who operates two Nevada casinos in the Grand Lodge Casino at the Hyatt Regency Lake Tahoe and Stockman’s Casino in Fallon, as well as Rising Star Casino Resort in Indiana, the Silver Slipper Casino Hotel in Mississippi, and Bronco Billy’s in Colorado, has already indicated the bid might not be enough.

Full House Resorts said: “The expression of interest reflects a price that is significantly below recent and past trading of its stock and well below most expectations for the value of the company.”

Affinity, operates 11 gaming properties with five casinos in Nevada, three in Colorado, two in Missouri and one in Iowa. It said it would keep the enlarged company headquartered in Las Vegas. Affinity’s Nevada properties include Buffalo Bill’s, Primm Valley and Whiskey Pete’s in Primm, the Rail City Casino in Sparks and Silver Sevens in Las Vegas.

James Zenni, Chairman of Affinity’s board of directors and CEO of Z Capital Partners, said: “Our proposal represents a unique and compelling opportunity to maximize value for stockholders and stakeholders in both companies. Combining Full House’s custom-designed, regional gaming properties with Affinity’s complementary portfolio will create a best-in-class platform for value creation in this consolidating market. With an experienced and dedicated management team, Affinity would bring significant operational capabilities and expertise that we believe would further propel the combined company’s growth and unlock unrealized potential for Full House stockholders.”

Caption: Grand Lodge Casino at the Hyatt Regency Lake Tahoe

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