Station Casinos go public as Red Rock Resorts
The operators run 19 large and small casinos all over Las Vegas Valley and Indian casinos from California and Michigan.
US.- Nevada Gaming Commission and the Gaming Control Board approved the Station Casinos’ plan of being a publicly traded company on January 21. Red Rock Resorts Inc is the name chosen for the future holding company.
For seven years, Station Casinos have been owned by a private equity ownership. But a bankruptcy declaration in 2009 forced Las Vegas-based gaming company to trim US$4 billion of debt and they renovated the corporation with a new partnership arrangement. However, since last Thursday, Nevada regulators gave them the permission to become public. They expect to launch the IPO before the announcement of the incomes of this first quarter, that is why Station Casinos arranged a special hearing with the Control Board, as timing plays a central role in the stock market conditions, says Mac Falcone, Chief Financial Officer.
According to Vegas Inc, current Chairman and CEO, Lorenzo Fertitta and Frank Fertitta III are keeping a 43 percent of the company and two of five seats on the Board of Directors. But first, the company will have to receive the approval for the stock sale of the Securities and Exchange Commission at once. If the process continues, they will have to find investors by a way known as “road show.”
Meanwhile, the unions criticise the regulation and they report irregularities in the relationship between the Station Casinos and Deutsche Bank that controls 25 percent of stake through a subsidiary. During their accusation of the IPO, Maya Holmes, Research Director of the unions, accused the bank of manipulation and the subsequent US$2.5 billion fine. Station Casino representatives replied that the bank has no influence on their decisions.
