Nevada Approves Hollywood Park Purchase

Hollywood Park Inc.’s planned acquisition of casino operator Boomtown Inc. was approved by the Nevada Gaming Commission, clearing the way for the $245-million stock and debt transaction, the companies said. Hollywood Park and Boomtown said the merger is subject to gaming approval in Louisiana and consent from company bondholders. Last year, Inglewood-based Hollywood Park said it would exchange each share of Boomtown common stock for 0.625 share of Hollywood Park stock and assume $130 million in Boomtown debt. Hollywood Park also would assume Verdi, Nev.-based Boomtown’s $130 million in debt and unpaid lease agreements. Boomtown said fiscal second-quarter net income rose to $379,000, or 4 cents a share, from $48,000, or 1 cent, a year earlier. Boomtown shares lost 12.5 cents to close at $7.50 on Nasdaq, while Hollywood Park’s rose 25 cents to close at $12.75, also on Nasdaq.