PA Gaming Control Board approves merger of Penn National with investor group

By Lisa Kerner

Charlotte, N.C., May 29 - The Pennsylvania Gaming Control Board approved the change of control of the category 1 slots operator license held by Mountainview Thoroughbred Racing Association, owner of Hollywood Casino at Penn National Race Course in Grantville, Dauphin County, to PNG Acquisition Co., it was announced on Thursday.

PNG Acquisition must also pay the Commonwealth a $2.5 million license transfer fee, according to a Pennsylvania Gaming Control Board news release.

With the approval, the merger of Penn National Gaming, Inc. and affiliates of Fortress Investment Group LLC and Centerbridge Partners, LP moves one step closer to completion.

The proposed merger has been approved by the Ohio State Racing Commission, New Jersey Racing Commission, West Virginia Lottery Commission, New Mexico Gaming Control Board, New Mexico Racing Commission, Pennsylvania State Horse Racing Commission and Mississippi Gaming Commission.

Under the companies' agreement, if the merger is completed by June 15, Penn National shareholders will be entitled to receive $67.00 cash per share. If the merger is not completed by June 15, the per-share merger consideration will be increased by $0.0149 per day, it was previously reported.

Penn National said it is unlikely that all of the necessary regulatory approvals will be obtained by June 15, affecting the timing of the merger's close.

Either party may elect to extend the expiration date of the merger agreement by 120 days, to Oct. 13, under the terms of the merger agreement, it was noted in a Penn National news release.

Shareholders approved the $8.9 billion transaction in December.

Penn National, located in Wyomissing, Pa., owns and operates casino and horse racing facilities.

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