Australia's New World Gaming Inc. has announced plans to acquire Gateway Casinos Income Fund (TSX:GCI.UN) in a deal worth roughly $1.4 billion.
Gateway is the Burnaby-based operator of Burnaby Casino, Cascades Langley Casino and Hotel and seven other casinos across Western Canada that collectively employ 3,000 people.
Under the agreement, New World will acquire 100% of Gateway shares at $25.26 each, for a total of about $800 million.
The sum of all transactions in the deal, including associated fees and expenses, is valued at approximately $1.37 billion.
New World is a 50/50 joint venture between Publishing and Broadcasting Ltd. and Macquarie Bank Ltd.
P&B Ltd., which is among the top 25 companies listed on the Australian Stock Exchange, is an Australian media and entertainment giant that generates annual revenue of approximately $3.3 billion.
Macquarie Bank ranks in the top 15 ASE-listed companies. The investment bank and its media, entertainment and technology off-shoots employ over 10,000 people in 24 countries, including 200 across Canada.
The acquisition is expected to be completed late in the second quarter or early in this year's third quarter.
Gateway share price range during the past week: between $25 and $19.60; 52-week high: $25; 52-week low: $14.50.