Today, shares of Dover Downs Gaming and Entertainment went soaring. Not just a slight jump, either. It was enough for the company to become a Yahoo Finance trending ticker. But why? Well, it boils down to the Dover Downs Twin River merger.
Dover Downs Twin River Merger: What We Know
Dover Downs is set to merge with Twin River, and now that the news is out, the Dover Downs stock is up more than 50%.
Seeing the stock soar isn’t surprising, considering there will be numerous positives that come out of this. For starters, the merger’s going to be turning Twin River into a publicly traded company.
Second, Dover Downs believes this transaction will allow for its business to grow, as well give investors the opportunity to invest in their facilities.
And third, there are some changes in the gaming industry on the horizon. As a result, Dover Downs wanted to give itself a competitive edge, and the Dover Downs Twin River merger will do just that and allow it to “compete more effectively,” says Denis McGlynn, CEO of Dover Downs.
Important Quick Facts to Know:
- Stockholders of Dover Downs will exchange shares for Twin River Worldwide shares.
- These shares will represent more than 7% (7.225%) of the equity of the integrated company after the merger is final.
- The Dover Downs Twin River merger is forecasted to qualify as a reorganization that is tax-free.
- Part of the closing deal requires Twin River to register its shares with the SEC. The company will also have to list with either the Nasdaq or the NYSE.
The Dover Downs Stock: Reaping the Benefits
This merger will benefit both sides, as well as benefit in the long-run, so again, we’re not surprised to see the stock flying.
But where will it end the day? That is the question. Will the stock trade above 60% or will it drop below 50%?
Right now, according to Yahoo Finance, Dover Downs (NYSE:DDE) is trading at $3.09, which puts the stock up 52.72%.
Considering the market closes in a half-hour, I’ll bet that Dover Down won’t shoot up another 8%. But hey, there’s always tomorrow!
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