Eldorado Resorts has bought Caesars Entertainment in a deal worth, including debt, about US$17.3 billion, in a deal which creates the largest US IR operator.
Caesars had been encouraged to agree to the sale by its largest shareholder, activist investor Carl Icahn. Presumably, the consummation of this deal ends a long period of uncertainty that had been hanging over Caesars since former President and CEO Mark Frissora announced his plans to resign last November.
Under the deal, Eldorado’s management team will take control of the new company, but it will continue to operate under the Caesars name. Eldorado and Caesars shareholders will hold approximately 51% and 49%, respectively, of the combined company’s shares.
The combined company will own and operate about sixty US casino resorts and gaming facilities across sixteen states.
Tom Reeg, chief executive officer of Eldorado, commented, “Eldorado’s combination with Caesars will create the largest owner and operator of US gaming assets and is a strategically, financially and operationally compelling opportunity that brings immediate and long-term value to stakeholders of both companies. Together, we will have an extremely powerful suite of iconic gaming and entertainment brands, as well as valuable strategic alliances with industry leaders in sports betting and online gaming.”
Jim Hunt, chairman of Caesars, added, “This announcement is the culmination of a thorough evaluation by the Caesars board of directors. The board unanimously concluded that the combination of these two companies creating an even stronger entity is a decision for our shareholders’ consideration and vote for immediate and ongoing value.”
The combined company’s board of directors will consist of eleven members, six of whom will come from Eldorado and five of whom will come from Caesars. (AGB Nippon)