Silver Slipper Casino part of Full House merger offer

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Silver Slipper Casino part of Full House merger offer

Another merger proposal between casino companies is being reported just a week after rumors of talks between Caesars Entertainment and Golden Nugget’s parent company.

Last week, a proposed merger of Caesars Entertainment and Golden Nugget was reported by the New York Post. But on Monday, the publication said Caesars — parent company of Harrah’s Gulf Coast — will turn down the offer made by Tilman Fertitta to merge his casinos.

This week, Z Capital Partners is proposing a merger between Affinity Gaming and Full House Resorts, parent company of Silver Slipper Casino in Hancock County.

Z Capital announced on Monday a proposed cash or stock purchase of $132.5 million, or $1.79 a share on fully diluted basis for Full House.

Z Capital Partners bought Affinity Gaming in 2017 for $580 million.

Full House management responded Tuesday — when Full House stock was trading at $2.63 — that offer isn’t strong enough.

“Our board has unanimously determined that the potential transaction referenced in your letter is not in the best interests of Full House Resorts and its stockholders,” said Bradley Tirpak, board member, and Daniel Lee, president and CEO. They said the offer “dramatically undervalues the company’s business and does not remotely reflect the company’s strategic value and future prospects.”

The letter said Full House representatives met at Z Capital’s Illinois office in September to express interest in purchasing some of Affinity Gaming’s assets.

“We remain interested in doing that,” the letter said.

In addition to Silver Slipper, Full House has five casino operations in Mississippi, Colorado, Indiana and Nevada.

Affinity Gaming has 11 casinos in Nevada, Colorado, Missouri and Iowa.

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