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Station Casinos Accepts Buyout

A group led by the company's founding family will pay $90 a share, according to <I>The Wall Street Journal</I>.

Updated from Feb. 25.

Station Casinos

(STN) - Get Stantec Inc Report

has accepted a private buyout offer from a group led by its founding family and real estate company Colony Capital.

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The Las Vegas-based company, which operates casinos catering to that city's residents, first received an $82-a-share offer from the group back in December but has since remained silent about it.

Monday morning, Station confirmed it would accept a $90-a-share offer worth approximately $8.8 billion, including the assumption and repayment of some $3.4 billion in debt. The transaction is expected to be completed in approximately six to nine months, subject to regulatory approvals and customary closing conditions.

The acquiring group includes Station chairman and CEO Frank Fertitta, Station vice-chair and president Lorenzo Fertitta and Colony Capital. Affiliates of Deutsche Bank as lead lender and JPMorgan Chase Bank have provided debt financing commitments.

Station's shares were up 5% to $87.50 in pre-market trading.