After much sabre rattling and threats of lawsuits, FAST Acquisition and Fertitta Entertainment have called off their merger agreement. Fertitta is parent company of Golden Nugget/Landry’s. The deal was valued at $6.6 billion when announced in February.
The parties in a news release said a settlement was reached regarding their disagreement over the termination date in the merger agreement.
The dust up began last week when Fertitta informed the SPAC of its intention to terminate the deal because the Dec. 1 closing deadline had passed. The SPAC fired back in a letter arguing that the reason the deadline passed without sealing the deal was because Fertitta was allegedly more than three months late in providing essential financial documents.
Fast Acquisition yesterday said it was postponing a shareholder vote indefinitely.
The settlement announced today provides FAST and its shareholders up to $33 million through a combination of upfront and deferred payments, part of which is contingent on whether FAST ultimately completes a business combination. The settlement includes a payment to the SPAC which will be used to cover expenses associated with the terminated transaction as well as a replenishment of the SPAC’s working capital. FAST said it intends to continue to seek a business combination with another company. Read more.
