June 16 (Reuters) - Landry's Restaurants (LNY.N: Quote, Profile, Research) said it agreed to be bought by CEO Tilman Fertitta for about $1.3 billion, including debt.
Fertitta, who made his initial offer for the restaurant-chain operator in January and revised it in April, will pay $21.00 a share in cash, a premium of about 25 percent to the stock's Friday close of $16.79.
The deal value of $1.3 billion includes about $885.0 million of debt.
Fertitta, who has been with the company for more than two decades and owns about 39 percent of Landry's, has received debt financing commitments from Jefferies Funding LLC, Jefferies & Co Inc, Jefferies Finance LLC and Wells Fargo Foothill LLC to fund the acquisition.
Landry's, which operates the iconic Golden Nugget Hotel & Casino in Las Vegas and several casual-dining outlets, said a special committee will solicit superior acquisition proposals from third parties for about 45 days following the signing of the merger agreement.
The deal is expected to be completed in about four months.
The company said it will stop payment of its regular quarterly dividend of 5 cents per share while the transaction is pending.
Shares of the Houston, Texas-based company were up 14 percent at $19.11 in morning trade on the New York Stock Exchange. (Reporting by Anne Pallivathuckal in Bangalore; Editing by Jarshad Kakkrakandy)
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