Dover Downs Gaming & Entertainment, Inc. (NYSE: DDE) rose Monday after the company and Twin River Worldwide Holdings disclosed a merger agreement.
A news release issued Wednesday stated that the merger reckons that Dover Downs stockholders will exchange their Dover Downs stock for Twin River common shares representing 7.225% of the equity in the combined company at closing. Common Stock and Class A Common Stock of Dover Downs will be treated equally in the merger.
The transaction is intended to qualify as a tax-free reorganization.
Twin River is privately held and there is currently no public market for its shares. As a condition to closing, Twin River will register its shares with the Securities and Exchange Commission (and list the shares on the NYSE or NASDAQ. Last fiscal year, Twin River enjoyed net revenue of $428.8 million, and net income of $63.5 million.
Dover Downs’ President and CEO, Denis McGlynn stated, "Becoming part of Twin River is transformational for us. We have been impressed with the depth and talent of the Twin River organization and their operational capabilities.
"We believe this transaction will help us grow our business, invest in our people and our facilities and compete more effectively given changes in gaming on the horizon. We expect to see many positive benefits for the State, the Delaware Lottery and our employees and stockholders."
Dover Downs shares hurtled higher 93 cents, or 46%, to $2.95
