Acquisition further strengthens Pure Casino’s position as one of the largest casino operators in the Canadian province of Alberta
Canadian casino operator Gamehost will be delisted from the Toronto Stock Exchange today following its acquisition by Pure Casino Entertainment.
Following an initial agreement at the end of March, the take-private deal has seen Gamehost shareholders receive $13.65 per share in cash.
The transaction marks a significant milestone for Pure Casino Entertainment, a subsidiary of Indigenous Gaming Partners (IGP), which is a gaming partnership of five Nova Scotia-based First Nations and Sonco Gaming.
The deal represents a rare instance of a First Nations-led group taking a publicly traded company private in Canada.
The acquisition includes Gamehost’s Alberta portfolio: Great Northern Casino in Grande Prairie, Rivers Casino and Entertainment Centre in Fort McMurray, Deerfoot Inn & Casino in Calgary, the Service Plus Inns & Suites, and Encore Suites by Service Plus hotel properties in Grande Prairie.
Combined with IGP’s existing four casinos – Pure Casino Edmonton, Pure Casino Yellowhead, Pure Casino Calgary and Pure Casino Lethbridge – the acquisition adds three casinos and three hotels to the company’s portfolio, bringing the total to seven casinos and three hotels.
In a separate transaction, VICI Properties completed its previously announced transaction to acquire the real estate assets of Deerfoot Inn & Casino, Great Northern Casino and two limited-service hotels that are adjacent to the Great Northern Casino for CA$200.6 million.
The portfolio has been added to the existing triple-net master lease agreement between VICI Properties and Pure, and annual rent increased by CA$16.1 million.
Shares in Gamehost Inc (TSE:GH) closed at CA$13.64 per share in Toronto Thursday, while shares in VICI Properties Inc (NYSE:VICI) closed 0.71 per cent lower at $26.53 per share in New York.