Hollywood Park and Casino Magic Corp.
Announce Plan to Merge
$340 Million Transaction Will Create Expanded, More
Diversified Gaming, Sports And Entertainment Company
INGLEWOOD, Calif., Feb. 19, 1998 - Hollywood Park Inc. (NYSE: HPK) and
Casino Magic Corp. (Nasdaq: CMAG) today announced they have signed a definitive
merger agreement. Under the terms of the agreement, Hollywood Park will
acquire Casino Magic for a combination of cash and assumed debt with an
aggregate value of approximately $340 million. Hollywood Park will purchase
in cash each share of Casino Magic common stock for $2.27 per share. Casino
Magic has approximately 35.7 million shares outstanding.
Immediately Accretive To Hollywood Park's Earnings Per Share
Solidifies Hollywood Park's Position as a Consolidator in the Non-Las Vegas,
Non-Atlantic City Gaming Sector
Provides Strong Platform to Support Hollywood Park's Growth Strategy
Combined Revenues and Assets in Excess of $600 Million and $800 Million,
The combined company will have six operating casinos in three states,
own two card club casinos in California
and operate three pari-mutuel race tracks, creating a diversified gaming,
sports and entertainment company with
combined revenues and assets in excess of $600 million and $800 million,
Completion of the merger is subject to various conditions, including
approval by the shareholders of Casino
Magic, licensing approvals from authorities in the states where the
combined company will operate, and
termination of the waiting period under the Hart-Scott-Rodino Act.
"I look forward to being able to grow Casino Magic with Hollywood Park
and capitalize on the expansion
opportunities this combined operation will generate," said Marlin F.
Torguson, chairman of Casino Magic. Mr.
Torguson will remain with the company.
"This merger further solidifies our role as a consolidator in the non-Las
Vegas, non-Atlantic City gaming sector,"
said R.D. Hubbard, chairman and chief executive officer of Hollywood
Park. "Following the successful integration of Boomtown in 1997, we are
excited about continuing our growth strategy as a national gaming, sports
and entertainment company."
Casino Magic Corp., with principal offices in Bay Saint Louis, Mississippi,
operates gaming casinos, through
subsidiaries, in Bay Saint Louis and Biloxi, Mississippi, Bossier City,
Louisiana, Neuquen City and San Martin de
los Andes, Argentina.
Hollywood Park Inc., headquartered in Inglewood, Calif., is a gaming
and entertainment holding company. It
(The Private Securities Litigation Reform Act of
1995 provides a "safe harbor" for forward-looking statements.
The Information contained in this news release, other
than historical data, contains statements that are
forward-looking, such as references to the future
performance of the combined company, growth opportunities,
and the company's dependence on shareholder and regulatory
approval to complete the transaction.
Forward-looking information involves important risks
and uncertainties that could significantly affect anticipated
results in the future and accordingly, such results
may differ from the expressed in forward looking statements
made by or on behalf of the company. For more information
on the potential factors which could affect
Hollywood Park Inc.'s financial results, review Hollywood
Park Inc.'s filings with the Securities and Exchange
Commission, including the Company's annual report
on Form 1O-K and the Company's other filings with the SEC,
including Hollywood Park Inc.'s Join Proxy/Prospectus
dated Sept. 20, 1996.)
R.D. Hubbard, Chairman and CEO
G. Michael Finnigan, President, Sports and
Entertainment and CFO
Hollywood Park, Inc., 310-419-1539
Larry Delaney or Daniel Saks, General Information
Michaelle Burstin, Media
Investors: Kathy Brunson, 312-266-7800, or
Sue Dooley, 415-986-1591
all of The Financial Relations Board
owns and operates Boomtown, Inc. with casinos in Reno, Nev., Biloxi,
Miss., and New Orleans; the Hollywood
Park Race Track, one of America's premier thoroughbred racing facilities
and site of the 1997 Breeders Cup(R);
Turf Paradise Inc., a premier thoroughbred racing facility in Phoenix.
Ariz.; and the Hollywood Park - Casino. The
company owns and leases the Radisson Crystal Park Hotel and Casino
in Crystal City, Calif. Hollywood Park
Race Track and Hollywood Park - Casino are situated on 378 acres near
Los Angeles International Airport.
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