Esplanade Capital proposes to buy Laughlin operator

An investment management firm, which is based in Boston, has proposed a huge USD 101.5 million buyout plan for Archon Corporation. It is a casino operator in Laughlin and owns Pioneer Hotel & Gambling hall there.

At this moment, Esplanade Capital is believed to be the second largest stakeholder in Archon outside of its owners. They have proposed the buyout offer to the company’s board of directors in last month’s meeting.

Esplanade Capital is currently offering USD 17.5 for every share of the company in a deal, which will involve the purchase of all of its 5.8 million shares.

Other than the casino in Laughlin, the operator also owns 27-acre site at the Strip’s north end, where an amusement park was there sometimes back. Again, they also have office buildings in suburban Boston and Maryland.

Paul Lowden, who is the chairman of Archon and owns 85 percent of the company’s shares when combined with the stakes, which his family has, said, “I have no intention of letting go of the business to anyone. I don’t think that the buyout proposal from Esplanade Capital is a serious offer.”

On the other hand, Shawn Kravetz, who is the president of Esplanade Capital, said, “Archon’s Board of Directors is yet to respond to the offer proposed by our firm. This is why we have made our offer public to let them know that we are quite serious about it.”

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