December 21, 2020 Casino, Technology, Online, Land-Based

Landcadia amends voting requirements for GNOG acquisition

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Landcadia Holdings II has announced it has amended its purchase agreement of Golden Nugget Online Gaming (GNOG) to ensure the acquisition will go through.

The special purpose acquisition company (SPAC) has modified the voting requirements needed for shareholder approval with the aim to provide an increased possibility that the business combination will be completed.

The company postponed its special meeting of shareholders until 29 December after only 40.5% of Class A common stock shareholders had voted as of 18 December, although 99.8% of those were in favour of the merger.

Landcadia believes the “low voter turnout is primarily the result of having a significant portion of our stockholder base comprised of retail stockholders.”

Now, the business combination will be approved if a majority vote is received from shareholders with outstanding shares of common stock, rather than a majority from outstanding shares of Class A common stock held by disinterested stockholders.

A company statement said: “The Company believes the amendment is in the best interests of its stockholders given the significant increase in the price of the Company's Class A common stock since the announcement of the Business Combination and the overwhelming support of the Business Combination by stockholders who have voted thus far.”

Back in June it was announced that Landcadia entered into a purchase agreement to acquire GNOG, valuing the online casino division of Golden Nugget at $745m. The deal, which was expected to go through in Q3, will see GNOG go public following the acquisition from a company Golden Nugget’s owner Tilman Feritta’s holding company Fertitta Entertainment, is a co-sponsor of.

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