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Landcadia II looks to complete GNOG deal on Dec 18


Nasdaq-listed special purpose acquisition company Landcadia Holdings II has called a special meeting on December 18 for shareholders to approve its acquisition of Golden Nugget Online Gaming (GNOG). 

In lieu of its 2020 annual meeting of stockholders, the company has scheduled the special meeting to approve the proposed business combination with GNOG.

While the merger is subject to customary closing conditions, it is expected to be finalized “as soon as practicable” should shareholders back the deal at the special meeting.

This will see GNOG spun off from the core Landry’s casino and hospitality business, and trade on the Nasdaq as a separate, listed entity.

The acquisition took a step towards completion last week, after GNOG was granted an online casino license by the New Jersey Casino Control Commission, meaning it is licensed as a separate entity to the land-based Golden Nugget casino business.

The deal was first announced in June this year, and values the business at $745m.

Landcadia II was established by Tilman Fertitta – owner and CEO of Landry’s – who will serve as the co-chair and chief executive of the new entity – and investment bank Jeffries.

Results published in October showed that GNOG recorded a 91.9% rise in net revenue for the third quarter of the year, as gross gaming revenue for the three months to 30 September came to $28.9m, almost double the $14.9m generated in the third quarter of 2019.

After gaming taxes, its net revenue came to $25.9m, up from $13.5m in the prior year.

The operator’s president, Thomas Winter, said that based on October’s performance, the business believed it could generate gross gaming revenue of more than $100m in the state for 2020.