Penn National Gaming is close to finalizing the purchase of a company that operates casinos in Canada and Louisiana.
The Pennsylvania pari-mutuel and casino company cleared its final hurdle when it got approval from the Chippewas of Mnjikaning First Nation in Ontario to assume control of CRC Holdings, which manages the tribe's Casino Rama near Toronto. Penn National already had approval from the Ontario Lottery and Gaming Corp. and was waiting on the tribe's consent .
Penn National executives said this week they anticipate closing on the purchase of CRC Holdings soon. The deal also involves a company called Louisiana Casino Cruises, which is owned largely by CRC Holdings. Penn National is acquiring the minority interest in the Louisiana company not owned by CRC Holding. Louisiana Casino Cruises operates the Casino Rouge near Baton Rouge.
It has been a good week for Penn National (Nasdaq:PENN) and the market has rewarded it accordingly.
The announcement regarding CRC Holding came on the heels of a glowing first quarter during which Penn National enjoyed record increases in revenue, earnings, and net income. Following the release of first quarter earnings on Tuesday, Penn National stock rose 12.4% to close at $15.20. On Wednesday, the stock rose another 8% to $16.40. Trading has been heavy since Monday with an average of 305,700 shares changing hands compared with the company's average daily volume of around 43,000 shares. Penn National's 52-week range is $8 and $18.37.