Jeffrey Jacobs, owner of Colonial Downs, has withdrawn a complicated offer that would have placed the racetrack and other of his holdings under the corporate banner of MTR Gaming Group, Inc. — with Jacobs ultimately owning a controlling interest in the combined company.
MTR Gaming revealed that Jacobs had withdrawn his offer last week (here).
As reported in June (here), Jacobs had presented an unsolicited offer to MTR Gaming to sell that company the holdings of Jacobs Entertainment, Inc. Those holdings include Colonial Downs and its network of off-track betting centers, two Colorado casinos, three Nevada casinos and 23 video poker truck stops in Louisiana.
Under the terms of the proposal, Jacobs would have sold his company to MTR Gaming for more than $144 million in MTR common stock. That, coupled with the approximately 18 percent of MTR which he already owns, would have given him an estimated 60 percent ownership of the combined company.
MTR Gaming is comprised of Mountaineer Casino in West Virginia, Presque Isle Downs in Pennsylvania, and Scioto Downs harness track and slots facility near Columbus, Ohio.
In a statement, MTR Gaming said, “The Company does not intend to provide updates or make any further comment.”