Blank-check company FAST Acquisition (NYSE:FST) sure moves fast. After news broke that a Golden Nugget SPAC merger could be on the way, FST stock closed higher by nearly 9%. So what do you need to know about the deal? And how does it involve the empire of billionaire Tilman Fertitta?
As a quick refresher, FAST Acquisition is a special purpose acquisition company looking to bring a private business to the public markets. Fertitta is a billionaire with a restaurant and hospitality empire. Together, the two could deliver a high-profile SPAC merger.
With that in mind, here is what you need to know about FST stock:
- FAST Acquisition first came public in August 2020.
- At the time, it raised $200 million by offering 20 million units at $10.
- Importantly, FAST Acquisition shared from the beginning that it was looking to target a restaurant or hospitality business in North America.
- This is because its leadership team specializes in branding and marketing, including reviving legacy brands.
- Investors should note that FST stock could be an opportunity to get in on a turnaround opportunity in the restaurant space.
- With this in mind, Bloomberg reported today that Tilman Fertitta was in talks with FAST.
- According to the report, Fertitta could take part of his restaurant and casino empire public via FST stock. This would include brands like Landry’s and Golden Nugget.
- Such a deal, including debt, would come in at $7 billion.
- These brands include Golden Nugget casinos and several restaurants including Del Frisco’s and Bubba Gump Shrimp.
- Fertitta previously shared that he was exploring different routes to take these brands public.
- One possibility was a separate IPO for Golden Nugget and Landry’s.
- Investors should also note that Fertitta’s Golden Nugget Online Gaming (NASDAQ:GNOG) recently came public via a SPAC.
FST Stock and a Golden Nugget SPAC Merger
Although Bloomberg cautions that terms of such a deal are not final, and that the FST stock SPAC merger could still fall apart, it is clear investors are excited. Immediately following the rumors, FAST shares shot up. But what is the appeal of the Fertitta empire?
Well, consider the state of the restaurant and hospitality world. Thanks to the novel coronavirus, restaurants and casinos are struggling. Stay-at-home orders and business closures have hurt revenues. Consumers are nervous about dining in and visiting physical casinos. Companies in the industry have laid off employees, relied on loans and otherwise suffered. However, with the vaccine rollout underway and a SPAC bet, investors could see this as a turnaround story.
Essentially, the Golden Nugget and Landry’s brands could come public just in time for the reopening rally. Fertitta and FST stock investors could be winners. At this point there is nothing but speculation to go off of, but you should still keep the potential deal on your radars.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
