Australia's PBL bids for Gateway Casinos

New World Gaming, PBL's 50-50 joint venture with Macquarie, will offer to buy Toronto Stock Exchange-listed Gateway Casinos Income Fund for us$ 21.84 per share, a 25.7 percent premium to the last traded price. The offer has the backing of Gateway Casino's board. Collectively, Gateway Casinos operates seven casinos in British Columbia and two in Edmonton, Alberta.

Publishing & Broadcasting, which recently completed a deal to sell half its media operations to private equity group CVC Asia Pacific, is chasing opportunities to expand its casino portfolio. The company, which owns two casinos in Australia, is also building three casinos in the fast growing gaming market of Macau with partner Melco International Developments Ltd.

''We see Gateway as a great opportunity in the North American gaming sector,'' PBL's gambling division chief Rowan Craigie said. ''The company has an established track record of offering its customers a high quality gaming and entertainment experience across its nine casinos in British Columbia and Alberta.''

The transactions will be financed through a combination of equity financing and newly acquired debt. Both Macquarie and PBL will contribute us$ 168 million, with the remaining us$ 843 million to be funded through external debt.

The deal is subject to the approval of the relevant gaming regulatory authorities in British Columbia and Alberta and other customary approvals and conditions.