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BRIEF-Gateway Casinos & Entertainment Ltd Says Co to Combine With Leisure Acquisition Corp In A $1.1 Bln Deal

Published 2019-12-27, 08:12 p/m
BRIEF-Gateway Casinos & Entertainment Ltd Says Co to Combine With Leisure Acquisition Corp In A $1.1 Bln Deal

Dec 27 (Reuters) - Gateway Casinos And Entertainment Ltd GTCSE.UL :

* GATEWAY CASINOS & ENTERTAINMENT LIMITED AND LEISURE ACQUISITION CORP. TO COMBINE IN TRANSACTION VALUED AT US$1.1 BILLION (C$1.5 BILLION)

* LEISURE WILL MERGE INTO A WHOLLY-OWNED SUBSIDIARY OF GTWY

* HG VORA CAPITAL MANAGEMENT AFFILIATES SUPPORTING TRANSACTION THROUGH $30 MILLION EQUITY COMMITMENT

* GATEWAY CASINOS AND ENTERTAINMENT-MARC FALCONE, LONG-TIME GAMING INDUSTRY OPERATOR AND INVESTOR, TO JOIN GATEWAY AS PRESIDENT AND CEO

* UPON FALCONE'S APPOINTMENT BECOMING EFFECTIVE, TONY SANTO, GATEWAY'S CURRENT CEO, WILL RETIRE FROM CO

* GATEWAY CASINOS AND ENTERTAINMENT- WARRANTS TO PURCHASE LEISURE SHARES TO BE CONVERTED INTO WARRANTS TO PURCHASE SHARES OF GTWY AT $11.50/SHARE

* GATEWAY CASINOS AND ENTERTAINMENT - EXISTING GTWY SHAREHOLDERS ARE EXPECTED TO REMAIN, ALTOGETHER, LARGEST SHAREHOLDERS OF COMBINED COMPANY

* TRANSACTION HAS BEEN UNANIMOUSLY APPROVED BY BOARDS OF DIRECTORS OF BOTH LEISURE AND GTWY

* MORGAN STANLEY & CO. LLC. ACTED AS M&A ADVISOR TO GATEWAY

* CREDIT SUISSE ACTED AS M&A ADVISOR TO LEISURE

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