Las Vegas-based Pinnacle Entertainment has agreed to sell its assets in Argentina to a consortium of local partners headed by experienced local operator Casino Club of Argentina.
Pinnacle’s Casino Magic Corp and Casino Magic Management Services Corp, which operate casinos in the cities of Neuquen, San Martin de los Andes, Junin de los Andes and Copahue, will be acquired by a group consisting of Casino Club, Da Silvano S.A., Compania Gerenciadora de Inversiones S.A. and Correon S.A., for approximately $40 million.
Anthony Sanfilippo, president and CEO of Pinnacle Entertainment, said in a statement, “This transaction is consistent with our strategy to focus on enhancing operating results at our core U.S. properties to build shareholder value. To achieve this, we are implementing initiatives that prioritize operational excellence to position our properties as the destination of choice for players in the markets where we operate.”
The buyers have already paid $8 million in working capital. The sum of $3 million would be owed to the buyers should Pinnacle not respect the terms of the sale agreement.
The sale is conditional upon the approval of the provincial government of Neuquen. Pinnacle anticipates completion in summer 2010.