SOURCE: Jacobs Entertainment, Inc.

Jacobs Entertainment, Inc.

November 20, 2013 11:16 ET

Jacobs Entertainment, Inc. Supports Eldorado's Proposal to MTR Gaming

GOLDEN, CO--(Marketwired - Nov 20, 2013) - Jacobs Entertainment, Inc. ("JEI") supports Eldorado Gaming's proposal to MTR Gaming.

Jeffrey P. Jacobs, CEO and Chairman of the Board of Jacobs Entertainment, stated today, "I am pleased to support Eldorado's proposal to combine with MTR Gaming at $6.05 per share (including up to $35,000,000 available for a cash election option). Although the initial Eldorado-MTR merger agreement did provide some of the benefits I feel are important for MTR's survival, $5.15 per share did not offer sufficient shareholder value. The amended agreement that increases both the price per share and the percentage of the value offered in cash achieves my desired goals. It provides all of the benefits of increased financial scale, geographic diversification, improved credit profile and potential multiple expansion, but does so at a price that maximizes shareholder value."

"In exchange for Eldorado's agreement to: a) increase their valuation of MTR from $5.15 to $6.05 per share and b) increase the cash portion of the consideration from $30,000,000 to $35,000,000, I am withdrawing my proposal to combine Jacobs Entertainment with MTR. I also have entered into a support agreement committing to support the MTR-Eldorado merger proposal as amended."

About Jacobs Entertainment

Based in Golden, CO, Jacobs Entertainment is the owner and operator of The Lodge Casino at Black Hawk and the Gilpin Hotel Casino, both located in Black Hawk, Colorado; the Gold Dust West-Reno in Reno, Nevada; the Gold Dust West-Carson City in Carson City, Nevada; the Gold Dust West-Elko in Elko, Nevada (the casino properties); Colonial Downs Racetrack in Virginia and eight related off-track wagering facilities located in Virginia; and 23 video poker truck stops located in Louisiana.

Contact Information

  • CONTACT:
    Jacobs Entertainment, Inc.
    Stephen R. Roark
    President
    303-215-5201