On Wednesday, Reuters reported that Boyd Gaming was negotiating a deal with Cannery’s owners, which include Millennium Gaming Inc, hedge fund Oaktree Capital Management and Australian casino operator Crown Resorts.
Boyd operates 22 gaming venues across the US, including six casinos in the greater Las Vegas area. Cannery operates two Vegas venues: the Cannery Casino and Hotel in North Las Vegas and the Eastside Cannery Casino and Hotel.
Cannery used to own the Meadows Racetrack and Casino in Pennsylvania, although in December it agreed to sell that property to Gaming Leisure Properties Inc for $440m.
Reuters’ sources claimed the sale of Cannery’s two remaining properties could cost Boyd between $225m and $240m. None of the parties involved in the alleged negotiations offered any comment on the rumors, but the sources claimed a finalized deal could be announced within weeks.
Crown will likely be happy to bid Cannery farewell, having originally agreed to acquire the company in 2007 for $1.75b, only to settle for a 24.5% stake worth $320m after the global economy crashed. More recently, Crown’s Vegas dealings prompted the Australian Tax Office to hit the company with a $362m back tax bill. Crown is currently trying to get Alon, yet another Vegas mega-project, off the ground.
Oaktree Capital, which holds 31.7% of Cannery, has had similarly dodgy fortunes with the US casino industry. Oaktree is one of the aggrieved junior creditors trying to avoid being stiffed by the bankruptcy of Caesars Entertainment’s main unit.