Ameristar Casinos, regional gaming operator will get hold of the bulk of the common stock of more than 26.1 million share of the company’s common stock, owned by the Craig H. Neilsen Foundation for $457.6 million ($17.50 per share). The common stock at present is possessed by the estate of the company’s founder, who expired in 2006.
The transaction will result in the foundation’s controlling stake in Ameristar to 17 percent, down from 55 percent. The public shareholders, who manage eight casinos in seven markets, will be superior in command of the casino company.
Ameristar Chairman Ray Neilsen, who is Craig Neilsen’s son, said that based on the distinctive financial requirements of the estate and its beneficiaries, the verdict to sell the shares back to the company was made. The beneficiaries include The Craig H. Neilsen Foundation. It was established by his father, which was to support spinal cord injury research and treatment.
Ameristar said that in new debt financing, it also plans to acquire about $2.1 billion and to withdraw approximately $1.5 billion of its existing debt, it will use the proceeds to fund the buyback and for general working capital purposes.
Ameristar Casinos, in its 3-month average volume has already traded 1.714 times and has calculated resistance and support at $17.31 and $16.16 respectively. For price action moves through predefined trading ranges, traders like to use volume as their lie detector.
Ameristar Casinos stock is surpassing the overall market, as on the whole, market index S&P 500 is trading higher by 0.54% from its prior trading close.