Jacobs Entertainment buyout: MTR Gaming Group, Inc. (NASDAQ:MNTG) has just received a proposition in slideshow form from Jacobs Entertainment, offering to sell itself to MTR for about $5.70 per share. Rumors have been spreading about this story for a few months, and in September, MTR entered into a merger agreement with Eldorado Resorts.
Jeffrey Jacobs, the owner of Jacobs Entertainment, considers that his proposal has many more advantages for MTR than their previous deal with Eldorado, one of which is the possibility that MTR’s Board of Directors can appoint the initial board of directors of the new company, instead of losing control of the board nominations, Jacobs said in a letter to MTR’s Board of Directors attached to a filing with the SEC.
At the same time, Jacobs Entertainment presented its case on the merger between two companies. The full presentation is below.
Jeffrey Jacobs is also a shareholder of MTR Gaming Group, owning around 5.1 million shares of the company, which gives him an 18.14% stake. Aside from him, some hedge funds also hold shares of MTR, such as Don Morgan’s Brigade Capital with a stake which involves 2.7 million shares, or Paul Reeder & Edward Shapiro’s Par Capital Management, which owns 934,700 shares.