Golden Entertainment and Century Casinos rally after ‘win-win’ asset deal
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Analysts came out positive on the asset deal in the casino sector that will see Golden Entertainment (NASDAQ:GDEN) sell Rocky Gap Casino for $260M. VICI Properties (VICI) will acquire the PropCo for $204M and Century Casinos (CNTY) is acquiring the OpCo for $56M.
Roth Capital called it a win-win deal for GDEN and CNTY.
Analyst Edwardd Engel and team view it as a positive transaction for both GDEN-CNTY, where VICI’s involvement is seen offering attractive transaction values for both operators.
“For GDEN, we believe the transaction further simplifies the story and will support both deleveraging and capital returns. For CNTY, the transaction simplifies the story by further increasing U.S. exposure while maintaining reasonable leverage and a strong FCF profile. The transaction also affirms that operators and gaming REITs remain interested in M&A despite the uncertain economic environment.”
B. Riley Financial also liked the deal for both GDEN and CNTY. Expansion opportunities are seen for CNTY with the Rocky Gap property, while GDEN is noted to have transformed itself close to a Nevada pure-play stock. Buy ratings were reiterated on both GDEN and CNTY.
Shares of Golden Entertainment (GDEN) rallied 5.30% in early Thursday afternoon trading, while Century Casinos (CNTY) rose 5.63%. VICI Properties (VICI) poked a 0.65% gain.
Read the details on the Rocky Gap resort deal.
