Anchor Gaming Plans to Sell Interest in San Diego Casino
Slot machine maker Anchor Gaming said Wednesday that it will sell its interest in a San Diego casino as it prepares to close its pending merger with industry giant International Game Technology.
Las Vegas-based Anchor said it will sell its share of the management of the San Diego-area casino owned by the Pala Band of Mission Indians for $77 million.
Under the deal, Anchor will surrender its portion of the management contract to entrepreneur Jerome Turk, who already operates the casino and will become sole owner of the management company that runs it.
Anchor said its payment from the tribe will consist of $14 million in cash and $63 million payable by delivery of subordinated secured promissory note. The deal is expected to close by Jan. 31.
The sale comes as Anchor, which makes slot machines and operates casinos and slot machine networks, prepares to be bought by IGT, the nation’s largest slot machine maker with 66% of the U.S. market. Reno-based IGT has said it expects its $1.4-billion purchase of Anchor to close by January.
Anchor shares closed up $2.02 at $69.33 on Nasdaq.
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