LVS Seeks Buyer For Pynsylvania Casino- PENN, ASCA, & PNK
Sheldon Adelson owned Las Vegas Sands Corp. (NYSE:LVS) , is seeking a buyer who could offer as much as $1billion for its casino in Pennsylvania, few people who had direct knowledge of the process revealed. The said casino yields second highest gambling revenues in the second largest gambling market of America which is worth $3.16 billion.
The deal stands minimal chances at this price level when strong buyers like Pinnacle Entertainment (NYSE:PNK) and National Gaming Inc. (NASDAQ:PENN) locked funds elsewhere. The former announced last month that it will acquire Ameristar Casinos Inc. (NASDAQ:ASCA) for $900 while the latter which spent $610 million for Louis casino also plans splitting by the end of this year.
Sands Bethlehem earned $109 million for the year ending September 2012 and is worth about $817 million while the book value is $944 million. During 2012 its revenues were almost $438 million.
It is currently looking for suitable venues to expand its resort business to Spain and Canada and Macau that contributes 81% of its revenues. According to a regulatory filing the company owns 86% of the casino, its in-house hotel and entertainment section and only 35% of the retail segment.
Earlier this month Andrew Cuomo, Governor New York state also put forth a suggestion to develop three new casinos in the state. A Bloomberg Industry research found that casinos based outside of Las-Vegas can plough as much as 7.5 times the EBITDA. Sands Bethlehem, the casino under consideration is located at the site of the Bethlehem steel plant in the immediate vicinity of the state of New York.
Las Vegas Sands Corp. (NYSE:LVS) climbed 0.66% to $52.22. National Gaming Inc. (NASDAQ:PENN) were down 1.35% to $48.83. Ameristar Casinos Inc. (NASDAQ:ASCA) were down 0.44% to $26.95. Pinnacle Entertainment (NYSE:PNK) was down 0.19% to $15.74