Hollywood Casino Corporation announces the spin off of Pratt Hotel Corporation to Hollywood Casino shareholders.DALLAS--(BUSINESS WIRE)--Dec. 18, 1996--Hollywood Casino Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :HWCC HWCC Hazardous Waste Consultative Committee (Australia) HWCC Harpoon Weapons Control Console HWCC Hardware Closed Caption ) announced today the spin off of Pratt Hotel Corporation (AMEX AMEX See: American Stock Exchange : PHC PHC Primary health care, see there ) to Hollywood Casino shareholders of record on December 24, 1996. Hollywood Casino will distribute its 80.1% ownership, or 4,156,013 shares, to its shareholders on December 31, 1996. Trading of Hollywood Casino without the value of Pratt Hotel (ex-dividend) is expected to commence on December 20, 1996. Trading of the Pratt Hotel shares to be distributed is also expected to commence on December 20, 1996 on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. on a "when distributed When distributed When issued. " basis. In a separate release, Pratt Hotel announced that it anticipates changing its name to Greate Bay Casino Corporation effective December 31, 1996. The distribution of the Greate Bay shares is anticipated to occur by December 31, 1996. The Pratt Hotel shares are anticipated to begin trading under the Greate Bay name and the symbol GBY GBY God Bless You GBY Gonadoblastoma GBY Graham Ballett-Young (photographer, gamer, designer) on the American Stock Exchange on January 2, 1997. The Greate Bay shares will be distributed on the basis of approximately .167852 of a share of Greate Bay for each Hollywood Casino share outstanding. Currently, Hollywood Casino has approximately 24,759,968 shares outstanding. As a result of the distribution, shares of Greate Bay held by the public (other than affiliates) will increase from the current 19.9% ownership, or 1,030,614 shares, to an approximate 57.4% ownership, or approximately 2,976,182 shares. "The spin off of the Pratt Hotel shares to Hollywood Casino shareholders will separate the businesses operated by Pratt Hotel and the other businesses operated by Hollywood Casino into two corporate enterprises enabling each to pursue its own independent interests. However, Pratt Hotel's major asset, the Sands Hotel The Sands Hotel was a legendary Las Vegas, Nevada hotel/casino that operated from December 15, 1952 to June 30, 1996. It was the seventh resort that opened on the Las Vegas Strip. It was designed by architect Wayne McAllister. and Casino located in Atlantic City Atlantic City, city (1990 pop. 37,986), Atlantic co., SE N.J., an Atlantic resort and convention center; settled c.1790, inc. 1854. Situated on Absecon Island, a barrier island 10 mi (16. intends to continue its conversion to a Hollywood Casino(R) themed property. The separation of the two companies will provide financial flexibility for both Hollywood Casino and Pratt Hotel in the capital markets enabling both entities to pursue their optimum capital structures and operating strategies," said Jack E. Pratt, Chairman and Chief Executive Officer of Hollywood Casino. Hollywood Casino shareholders will receive stock certificates for whole shares of Greate Bay and cash payments for fractional shares. The distribution does not qualify as tax-free for federal income tax purposes; however, Hollywood Casino has been advised by tax counsel that the distribution will be treated as return of capital. Therefore, to the extent that the tax basis of a shareholder's Hollywood Casino shares exceeds the value of the distribution, the distribution will not create a current tax liability for the shareholder. Hollywood Casino has engaged an independent investment banking firm to value the distribution for federal income tax purposes. The value so determined will be reported to shareholders in January 1997 on the appropriate tax information statements. Hollywood Casino Corporation owns and operates distinctive Hollywood- themed casino entertainment facilities under the service mark Hollywood Casino(R) in Aurora, Illinois, and Tunica, Mississippi. Pratt Hotel Corporation, owns and operates the Sands(R) Hotel and Casino in Atlantic City, New Jersey “Atlantic City” redirects here. For other uses, see Atlantic City (disambiguation). Atlantic City is a city in Atlantic County, New Jersey, USA. Famous for its boardwalk and casino gambling, it is a resort community located on Absecon Island on the coast of the . CONTACT: Hollywood Casino Corp. Investor Contact: Buz LaFrano, Vice President Finance, 972/392-7777 or Media Contacts: Eric Terry, Director of Marketing and Communications, 972/392-7777 or Donna Bannwolf, Communications Manager 972/392-7777 |
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