Station Casinos, Inc. (NYSE:STN) announced a management-led buyout offer in a
13D/A filing today at $82 per share, in a transaction valued at around $4.7 billion. Although the offers comes at a 20% premium over yesterday's close, investors are anticipating a future raised bid with shares currently trading at around $83.10. While the stock is still trading at a 48% discount to enterprise value, it is worth noting that the company trades at higher multiples than comparable companies within its industry. The company's PEG ratio stands at 2.09 versus an industry 1.75, while its PE ratio is 39x versus 30x. However given the recent M&A speculation within the casino industry (ever since Harrah's $15 billion buyout in October and Tracinda's recent MGM bid) it is difficult to rule out anything. Moreover, the board's special committee said it would entertain other offers.
Share of
Boyd Gaming Corp. (NYSE:BYD) and
Penn National Gaming (NYSE:PENN) also moved up in today's trading by 4% to 5% on renewed M&A speculation. The gaming industry is still one worth watching as private equity and hedge funds continue to scoop up the major players.
Related CompaniesMGM Mirage (MGM)Harrah's Entertainment (HET)Las Vegas Sands Corp. (LVS)