Fertitta Ends $8.6 Billion Deal to Take Casino Empire Public

Fertitta Ends $8.6 Billion Deal to Take Casino Empire Public

(Bloomberg) — Billionaire Tilman Fertitta reached a settlement to pull out of an $8.6 billion deal with a blank-check company that would have taken his restaurant and casino empire public.

Most Read from Bloomberg

Anatomy of a Bad Road

The 15 Best Beers We Drank This Year

Sand and Soldiers Mix as Troops Move In to Protect Cancun Tourists

The World’s Relentless Demand for Chips Turns Deadly in Malaysia

Former Oil Trader Is Now Betting on Lumber for Skyscrapers

Fertitta Entertainment Inc., the parent company of the Golden Nugget casinos and the Landry’s restaurant group, agreed to pay as much as $33 million to end a planned merger with Fast Acquisition Corp., a special purpose acquisition company formed last year.

“At the end of the day we ultimately determined that the right decision for my company was to remain private at this time,” Fertitta said in a statement on Friday. “I look forward to continuing to grow our business.”

The settlement brings to a quick resolution a dispute between Fertitta and Fast Acquisition that flared up earlier this month. Fertitta’s general counsel sent a letter Dec. 1 notifying the SPAC of its intention to call off the merger due to delays, drawing a threat of legal action in response.

Fast Acquisition shares advanced 1.2% to $10.18 as of 10:35 a.m. Friday in New York after gaining as much as 2.9%. Bonds issued by Golden Nugget were unchanged, according to Trace data.

Fertitta, who also owns the Houston Rockets basketball team, announced in February that he planned to take his casino and restaurant operations public through the SPAC. In June, he expanded the deal to add additional businesses.

Fast Acquisition, whose backers include Ruby Tuesday founder Sandy Beall, said it will continue to look for a combination with a new operating company and that the settlement will ensure the blank-check firm will remain sufficiently capitalized as it seeks a new target.

Most Read from Bloomberg Businessweek

From the Great Resignation to Lying Flat, Workers Are Opting Out

The Hunt for a Single Shot to Defeat Omicron and All Coronaviruses

Return-to-Office Chaos Is the Best Thing to Happen to Consultants Since Y2K

The Fall of a Russian Cyberexecutive Who Went Against the Kremlin

©2021 Bloomberg L.P.

Post a Comment