The 2 gambling establishments were sold to a local Argentinean company in the business for the sum of $ 40 million dollars US.
In a statement issued by Pinnacle Entertainment it said that the closing of the deal was awaiting approval by the Securities and Exchange Commission.
According to analyst Joel Simkind this move was to be expected after the announcements that were recently made by the Vegas based operator, that it intended to shift its focus towards its regional assets based in Louisiana, Saint Louis and Indiana. The way it seems, looks like the company is cutting out any distractions, while optimizing its cash flow, in order to focus all efforts to its regional assets . In this scenario selling off the Argentinean casinos would be the next logical step.
Last month the company launched a new casino in Saint Louis, but backed out from plans for another in favor of building a new casino hotel in Baton Rouge.
After announcing the sale of its two Argentinean casinos, the company also announced that it would increase debt issuance by 250 million dollars.
Posted on: May 6, 2010
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