Shares of Fast Acquisition Corp FST are trading higher on new terms for the SPAC merger and additional restaurants added to the new company.
What Happened: The enterprise value of the SPAC merger between Tilman Fertitta and Fast Acquisition Corp was raised from $6.6 billion to $8.6 billion, Bloomberg reports.
Catch Hospitality Group, Galveston Island Historic Pleasure Pier and Mastro’s Restaurants have been added to the terms of the deal.
The original SPAC deal announced in February included the casino and restaurant holdings that included Landry’s restaurants, Del Frisco's, Bubba Gump Shrimp, Morton’s The Steakhouse, Joe’s Crab Shack, Golden Nugget casino and other brands.
Related Link: Tilman Fertitta's Restaurant, Casino Group In Talks With Fast Acquisition SPAC
The company has casinos in Las Vegas, New Jersey, Mississippi, Louisiana and other parts of Nevada. The new company will also own a controlling stake in Golden Nugget Online Gaming Inc GNOG, which went public via SPAC.
Fertitta will own 72% of the new company after the merger, which is up from an originally planned ownership of 60%.
The combined company expects revenue of $920 million for the second quarter and EBITDA of $270 million.
The newly formed company is seen as a reopening play with restaurants and physical casinos that could see increased revenue amid the Covid-19 vaccine.
Price Action: FST shares are up 13% to $13.33, hitting new all-time highs Thursday.
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