NEW YORK (Reuters) - Station Casinos Inc. STN.N said on Monday it agreed to a $5.4 billion management-led buyout, after the investor group buying the company raised its offer by about 10 percent.
The Las Vegas-based company, which operates off-strip casinos used mostly by locals, is being taken over by a group called Fertitta Colony Partners, formed by Station Chief Executive Frank Fertitta, his brother and company vice chairman Lorenzo Fertitta, and a unit of private equity firm Colony Capital.
The group said on Monday it would take over Station for $90 per share, or $5.4 billion in cash. It will also assume debt of about $3.4 billion.
The price is an 8 percent premium to Station’s closing price of $83.30 on the New York Stock Exchange on Friday.
Fertitta Colony Partners made its original offer to buy Station on December 4, for a price of $82 per share.
The deal is expected to close in about six to nine months, Station said.
Reporting by Anup Roy in Bangalore, Bill Rigby in New York
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