Shareholders of Landcadia Holdings II, Inc. will finally vote on the acquisition proposed by the company led by Tilman Fertitta of Golden Nugget Online Gaming (GNOG), which is also controlled by Mr. Fertitta, in a virtual meeting scheduled for 18 December, the news emerged late last week.
Landcadia investors will vote on the deal about six months after it was first announced.
Headquartered in Houston, Texas, Landcadia operates as a special purpose acquisition company whose business purpose is effect a merger, asset acquisition or other types of business combination with online gambling operators. Texas billionaire businessman Tilman Fertitta co-chairs the company and serves as its CEO.
Landcadia and GNOG announced plans to merge in June. The value of the combined group was estimated at that time to be approximately $ 745 million. When the merger closes, which is expected to happen shortly after the shareholders’ vote later this month, Landcadia will change its name to Golden Nugget Online Gaming, Inc. and its ticker symbol Nasdaq will change to GNOG.
The combined group will be only the second publicly traded online gambling company in the US after DraftKings closed a similar deal with a SPAC last spring.
A merger with Landcadia helps GNOG go public without an IPO. SPAC mergers have become a popular alternative to traditional IPOs and are considered a faster and more efficient route to going public.
GNOG and Landcadia last month got crucial approval for their merger from New Jersey’s gambling regulators.
The New Jersey Casino Control Commission issued a casino license to GNOG as an online gaming affiliate of Golden Nugget Atlantic City and gave conditional green light to the gaming operator for its merger with the SPAC.
GNOG won the important approval despite concerns expressed by the New Jersey Division of Gaming Control that its combination with Landcadia could have a negative effect on the land-based Golden Nugget casino in Atlantic City and deprive it of the “Much needed cash flow of Internet games permanently. “
Members of the Casino Control Commission said they understood those concerns and supported various conditions with the aim of ensuring that the physical casino did not suffer losses or become a victim of negligence after the combination of GNOG with Landcadia.
GNOG currently operates as the online gaming arm of Mr. Fertitta’s Golden Nugget casino empire.
Reports emerged last week that Mr. Fertitta believes that Golden Nugget and multi-brand restaurant company Landry’s Inc. go public through an IPO to take advantage of a recent rally in equity markets. The IPO will reportedly include several Golden Nugget casinos and several Landry-owned restaurants. A person familiar with the ongoing discussions about the IPO said that Mr. Fertitta would retain control of his company through a stake of more than 50%.