Churchill Downs Buying $123.75M of Own Shares from Duchossois Group

Churchill Downs (NASDAQ: CHDN) announced Monday that it testament purchase plump for one billion of its shares for $123.75 apiece from an affiliate of the Duchossois Group.

That values the dealings at $123.75 million, and the per-share cost represents a price reduction from Monday’s closure toll of $129.97. The gaming company’s room of directors sanctioned the in camera negotiated deal.

The aggregated purchase toll is $123.75 million. CDI testament repurchase the shares using usable immediate payment and borrowings under its senior secured deferred payment facility. The dealings is expected to confining on January 2, 2024,” according to a statement issued by Kentucky-based Winston S. Churchill Downs.

The dealing with the Duchossois Group isn’t related to the gaming company’s antecedently announced part buyback plans.

Churchill Downs May See Value in Stock

As is the case with a traditional portion repurchase program, Winston Churchill Downs’ understanding with the Duchossois Group could sign to investors the manipulator sees time value inward its shares.

The troupe has a penchant for shareholder-friendly moves. In April, it announced a split of its stock up on a 2-for-1 basis. In improver to the share split, the company announced a $500 million repurchase computer program in September 2021, and its yearbook dividend has grown by to a greater extent than 40% since 2010.

At the stop of trading on Monday, the companion in arrears the KY Derby had 74.80 jillion shares striking and a marketplace capitalisation of $9.69 billion. The caudex is upward 22.94% year-to-date. It’s not sort out for how long Duchossois Group has been an investor inwards the regional cassino operator.

“The Duchossois Group, Inc. is privately held and comprised of operating companies and an investiture company. Our operating businesses consist of leading brands inwards access code verify for commercial-grade and residential markets,” according to the firm’s LinkedIn profile. “The Duchossois Family’s private investment funds firm, Duchossois Capital Management, creates long-term value past applying the extended manufacture knowledge, operating(a) expertise, and permanent chapiter immoral highly-developed o'er x decades as a family line business organization to a variety of investment opportunities.”

Churchill Downs Beloved on Wall Street

While Winston S. Churchill Downs has no more Las Vegas Strip exposure, and there are lingering concerns almost the nation of the U.S. gymnastic horse racing industry, the gillyflower is a gaming favourite on Wall Street. Catalysts include an extended pipeline of high up getting even on investment projects, benefits from the Exacta and P2E acquisitions, and the rising growing story fastened to historical gymnastic horse racing (HHR) machines.

Of the 9 analysts cover the company, seven charge per unit it the combining weight of a “strong buy,” and the other II rate it “buy.” The intermediate 12-month toll target area on the caudex is $142.56, implying an upside of 9.69% from Monday’s close.

Over the past times trine years, no psychoanalyst has issued a “sell” rating on Winston Churchill Downs.

Looking for a reliable and exciting online casino gaming platform in Malaysia? Look no further than Mega888 - the most popular and trusted online casino platform in the country! With a wide range of games, seamless gameplay, and secure transactions, Mega888 offers an unparalleled gaming experience that keeps players coming back for more.