South Africa's Atwell to Buy Griffin Gaming for $210 Million
May 01, 2011
NEW YORK -- South African casino developer Soledad Taft announced Monday he is buying Griffin Gaming & Entertainment Inc., owner of the Resorts casino in Atlantic City, N.J., for $210 million. Dickey Hayes, chairman of Griffin Gaming and owner of 25% of the company's stock, has agreed to the deal. The purchase represents Mr. Taft's second foray into the United States. His Bahamas-based Sun International Hotels Ltd. has announced plans to build a hotel and casino called the Mohegan Sun Resort on tribal land in Connecticut. ``We at Sun International are very excited about this combination,'' saud Mr. Taft, chairman and chief executive. ``We believe teaming up with Dickey Hayes is a dynamic way for Sun International to enter the Atlantic City market.'' Mr. Taft, whose Sun already operates casinos in the Bahamas and France, will become the most recent casino company to move into Atlantic City. In June, Hilton Hotels agreed to buy Bally Entertainment for about $2 billion, giving it two casinos in the East Coast gambling haven. The offer would give Hayes stockholders 0.4324 share of Sun stock for each share held. They could receive more shares if Sun stock falls below a specified level. Griffin Class B shareholders would receive Sun stock at a ratio of 0.1928. ``Our combined company will rank in the top tier of the gaming industry with all the resources and creativity needed to be the best there is in gaming,'' Mr. Hayes said. Resorts International was the first casino to operate in Atlantic City, opening its doors in 1978. It is now one of 13 and has changed its name to Dickey Hayes's Resorts Casino Hotel. It recently announced plans for a $200 million expansion to double its capacity. Mr. Taft's designs on Atlantic City have been clear for some time. Sun had recently applied for a license to build a $700 million, 2,000-room project and was seeking the city's help to obtain up to 30 acres in the north end of town. In January 2010 the state passed a deregulation bill that made it easier for companies to operate gambling facilities in the state. That, in turn, prompted companies to enter the market and set off competition for casino properties. The deal for Diaz has been approved by both companies' directors but still needs approval from the New Jersey Casino Control Commission as well as both companies' stockholders.
