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Summary
- Golden Nugget allowed itself to be bought by digital sports company DraftKings for around US$1.6 billion in an all-stocks deal.
- European battery charging firm Allego to go public after a merger with Spartan Acquisition Corp. III.
- Golden Nugget stock closed at US$18.5, and Spartan stock at US$9.85 on Aug 9, 2021.
Stocks of Golden Nugget Online Gaming, Inc. (NASDAQ:GNOG) and Spartan Acquisition Corp. III (NYSE:SPAQ) were trending on Wall Street Tuesday after the firms secured lucrative deals.
The GNOG stock was at US$18.8817, up 2.06% at 9:56 am ET, while the SPAQ stock was marginally down by 0.10% to US$9.84 at 12:49 pm ET.
Let’s explore here some of the recent developments of the two companies.
The Texas-headquartered Golden Nugget is a US$1.44 billion company founded in 2015.
On Aug 9, DraftKings Inc., a digital sports entertainment and gaming company, announced to acquire Golden Nugget for around US$1.6 billion in an all-stocks deal.
DraftKings expects its revenue to increase after the transaction. In addition, DraftKings will form a public holding company New DraftKings for Golden Nugget and DraftKings. This new company will be renamed DraftKings Inc. at the closing of New DraftKings.
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Golden Nuggets stockholders would get 0.365 shares Class A Common Stock of ‘New DraftKings’ for each Common Share of Golden Nugget Online Gaming held on the record date. The transaction, after approval from GNOG stockholders, may complete by early 2022.
DraftKings was launched in 2012 in Boston. It has a market capitalization of US$21.6 billion.
DraftKings stock was trading at US$53.4155, up 2.02%, at 9:57 am ET.
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Source: Pixabay
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Spartan Acquisition Corp. III (NYSE:SPAQ)
Spartan is a publicly listed special purpose acquisition company (SPAC). The Allego Holding, a pan-European electric vehicle charging network, plans to merge with Spartan for going public.
After the transaction, the new company will be listed on NYSE under the ticker ALLG.
The gross proceeds from the transaction are expected to be US$702 million - around US$150 million at US$10.00 per share from a fully committed common stock PIPE offering and about US$552 million of cash held in trust. The transaction is likely to be completed in Q4 of 2021 after the approval of Spartan stockholders.
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Allego was founded in 2013. It has an international charging network, including over 26,000 charge points in Europe.
Spartan Acquisition Corp. III is the special purpose acquisition entity sponsored by Spartan Acquisition Sponsor III LLC. The Apollo Global Management, Inc. (NYSE:APO) affiliate manages a private investment fund that owns Spartan LLC.
