Shareholders OK Penn National Deal

Shareholders of Penn National Gaming have approved a $6.1-billion takeover.

Penn National Gaming Inc., which operates casinos and racetracks, said Dec. 12 its shareholders overwhelmingly approved its $6.1-billion takeover by two investment companies.

Fortress Investment Group LLC and Centerbridge Partners LP made the offer in June. The deal includes a repayment of approximately $2.8 billion of PNGI's outstanding debt, making the bottom line of the transaction valued at $8.9 billion.

Under terms of the deal, if the acquisition is complete by June 15, 2008, shareholders will receive $67 per share. If it closes after June 15, the price will increase by about 1.5 cents per day.

PNGI, which aims to close the deal late in the second quarter of 2008, owns and operates 19 casinos and racetracks in the United States and Ontario, Canada. Included in the company's mix are Penn National in Pennsylvania, Charles Town in West Virginia, and  Zia Park Racetrack in New Mexico, as well as three harness tracks.