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Holy Moly: Boyd Gaming Sells South Coast

By Chuckmonster on Wednesday, 26th July 2006 12:26am
  » filed under Las Vegas  comments: 0

   

How long has this place been open? 8 months? In a shocker of a move, Boyd Gaming has sold off the South Coast casino to Michael Gaughan, former owner of Coast Casinos and suddenly departed Boyd executive.

Gaughan will sell off 13.5 million shares of Boyd Stock to pay for the joint outright.

The math:
13,500,000 shares X 36.49 (todays closing price)
______________________________________
$492,615,000

Thats a lot of cabbage, while we are surprised Boyd would dump this so quickly after initial building and investment, the word on the street is that South Coast hasn't been putting up very good numbers.

News flash from the Review-Journal:

Boyd Gaming Corp. today announced an agreement to sell its newest hotel-casino, the 660-room South Coast. The resort on Las Vegas Boulevard south of the airport will be sold to Michael Gaughan, formerly founder and operator of Coast Casinos, which Boyd Gaming acquired two years ago in a $1.3 billion merger deal.

It will be sold for a yet-to-be determined price equal to the net proceeds from the sale of approximately 15.8 million shares of Boyd Gaming stock owned by Gaughan. No ceiling price was set and the minimum price was not disclosed. Gaughan, who is leaving Boyd Gaming to operate the property, reportedly wanted to return to his entrepreneurial roots.



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