Anchor Gaming's (SLOT) shares were up $6.13, or 8.8%, to $76 after the company announced a 2-for-1 stock split and said it will buy almost 4.6 million shares of stock from its chairman, Stanley Fulton, and members of his family.
The company will pay $66.60 a share, or about $240 million in cash and $66 million of promissory notes. Members of the Fulton family will retain ownership of about 539,600 shares after the transaction.
As part of the transaction, the company will sell to Stanley Fulton substantially all of the assets relating to its Sunland Park Racetrack & Casino and its 25% interest in a Massachusetts horse racing facility. Stanley Fulton has agreed to pay $66 million for the assets by canceling the company's obligations under the promissory notes.
Also, Stanley Fulton, who has been chairman since the company's inception, as well as his son Michael Fulton, and his daughter Elizabeth Jones have agreed to resign their positions on Anchor's board. T.J. Matthews, Anchor's CEO, will be appointed chairman.