Texas billionaire Tilman Fertitta confirmed last week’s reports that he is considering taking parts of his casino and restaurant businesses public amid strong investor appetite for new stocks.
In an interview with CNBC, the businessman said Tuesday that he could list some of his businesses because “IPOs are very fashionable right now” and the size of his business, the restaurant industry and the casino industry are “something that people would like to have. “
Mr. Fertitta owns casino operator Golden Nugget and food empire Landry’s Inc., among other businesses. Bloomberg reported last week that the businessman was considering releasing a “substantial” portion of his gaming operations and restaurants through an IPO.
According to sources familiar with discussions ongoing contribution, the IPO could include several casinos Golden Nugget and several restaurants owned by Landry’s and the company would be worth several thousands of dollars.
Golden Nugget currently operates five casinos in four states, including two in Nevada and one in Atlantic City. As for Landry’s, the multi-brand foodie giant incorporates the Landry’s Seafood chain, as well as a number of other brands operating under its umbrella.
People close to Mr. Fertitta said that in the event of an IPO, the entrepreneur would retain control of his company through a participation of more than 50%.
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If you go public with your company, Mr. Fertitta could take advantage of the recent rally in equity markets driven by record lows for coronavirus this spring. Investors have maintained a strong appetite for public offerings after the pandemic hit the offering market.
Landry’s first went public in 1993, but returned to the private market about a decade ago. Mr. Fertitta told CNBC that he likes to be public and “competitiveness from quarter to quarter and year to year.”
In addition, he elaborated that a company could do “important business” and that there is “A lot more opportunities when you have a stock book.” The businessman pointed out that they have attempted several acquisitions in the last six months, but have always lost to public companies because these companies can pay a higher multiple.
Another company owned by Mr. Fertitta, Golden Nugget Online Gaming (GNOG), is taking an alternative route to the stock market. The iGaming and betting operator announced this summer that it would public through a merger with a company of special purpose acquisition.
The SPAC with which GNOG will merge, Landcadia Holdings II, Inc., is also led by Mr. Fertitta. The deal got regulatory approval in New Jersey late last month. Landcadia shareholders will vote on the transaction on Dec. 18 and is expected to close shortly thereafter.