Sovereign Gaming has received an updated acquisition proposal from Timberland Finance. This fresh bid is valued at a substantial $2.4 billion and is arranged in a rather unique manner. Timberland is suggesting a dual-pronged agreement: they’ll lend Sovereign $1.6 billion and subsequently present an additional $800 million that can be transformed into Sovereign shares.
This credit line isn’t your average visit to the financial institution, however. It carries a 7-year duration and a significant interest percentage, commencing at 6% for the initial two years and then escalating to 6.5% for the remaining period.
Currently, Sovereign is no stranger to acquisition endeavors. They’ve been under scrutiny recently, encountering examination from a Regal Inquiry and internal probes. Nevertheless, they’ve garnered attention from numerous potential buyers. Just the previous month, Celestial Entertainment entered the fray with a consolidation proposition.
The crucial inquiry now is whether Sovereign will embrace Timberland’s modified proposal. The executive council is still evaluating its alternatives.
On the 22nd of March, the Blackstone Group proposed an acquisition of Crown Resorts, suggesting a purchase price of $11.85 per share, entirely in cash. Crown, nevertheless, opted to roll the dice and declined the proposition.
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