Texas billionaire Tilman Fertitta reiterated last week’s news that, despite high investor demand for new equity, he is considering bringing parts of his casino and dining businesses public.
In an interview with CNBC, the businessman said Tuesday that he might list some of his business because “IPOs are so hot right now” and “something that people would want to own” is the size of his company, the restaurant industry, and the casino industry.
Mr. Fertitta manages, among other firms, the casino operator Golden Nugget and the dining empire of Landry’s Inc. Last week, Bloomberg announced that the businessman was considering bringing a “substantial” portion of his gaming and restaurant activities publicly through an IPO.
The IPO could include several Golden Nugget casinos and a range of Landry’s-owned restaurants, according to sources familiar with continuing listing discussions, and will see the business valued at several billion dollars.
Five casinos in four states are currently owned by Golden Nugget, including two in Nevada and one in Atlantic City. As for Landry’s, the multi-brand dining giant brings under its umbrella the Landry’s Seafood chain as well as a variety of other brands.
People close to Mr. Fertitta said that the businessman would maintain ownership of his company via a stake of well over 50 percent in the event of an IPO.
Mr. Fertitta could take advantage of the recent rally in stock markets led by new coronavirus lows this spring if he makes his company public. Since the pandemic reached the market for deals, investors held a healthy demand for initial public offerings.
In 1993, Landry first went public, but about a decade ago, it was returned to the private sector. Mr. Fertitta told CNBC that he loves visibility and quarter-to-quarter and year-to-year competitiveness.
He also clarified that a company could make “bigger deals” and that when you have a stock book there is much more chance.” The businessman pointed out that in the last six months they have attempted numerous acquisitions, but each time they lost to public companies because these companies would offer a greater multiple.
Golden Nugget Online Gaming (GNOG), another company owned by Mr. Fertitta, is taking an alternate path to the stock market. This summer, the iGaming and betting operator revealed that it would go public via a merger with a special purpose acquisition firm.
The SPAC with which GNOG is to combine, Landcadia Holdings II, Inc., is also managed by Mr. Fertitta. In New Jersey, the deal received regulatory approval late last month. The shareholders of Landcadia are scheduled to vote on the deal on 18 December and it is expected to close shortly afterwards.