Eldorado Resorts will buy Caesars Entertainment for approximately $ 8.5 billion - HailNewsUp.com: provides the latest news from India and the world

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Monday, June 24, 2019

Eldorado Resorts will buy Caesars Entertainment for approximately $ 8.5 billion

Eldorado Resorts will buy Caesars Entertainment for approximately $ 8.5 billion
Eldorado Resorts Inc. agreed to buy Caesars Entertainment Corp for approximately $ 8.5 billion in cash and shares, as it seems to build a scale to compete with larger companies such as Las Vegas Sands and Wynn Resorts.

The agreement comes more than three months after Caesars agreed to give multi-millionaire representative Carl Icahn three seats on the board to his representatives and give his opinion on the selection of his next CEO.

Icahn, who has been pushing for a Caesars sale, had a 14.75% stake in the company as of March 31, according to data from Refinitiv Eikon.

Reuters, citing people familiar with the matter, reported Sunday that Eldorado had closed an agreement with Caesars.

The Eldorado offer of $ 13.01 per share represents a premium of around 30% compared to the closing price of Caesar on Friday.

Caesars shares rose approximately 15% before the opening of the campaign, while Eldorado fell 5%.

Caesars, which emerged from bankruptcy in 2017, operates casinos with the Harrah's and Horseshoe brands.

The company owns and operates 34 properties in 9 US states. UU And three continents, and its long-term debt were $ 8.79 billion as of March 31.

Eldorado has a market value of around $ 4 billion. He had long-term debt of around $ 3.06 billion at the end of March. The company owns and operates 26 properties in 12 US states. UU

The shareholders of Eldorado and Caesars will have approximately 51% and 49% of the outstanding shares of the combined company after the closing of the agreement in the first half of 2020.

The combined company will retain the name of Caesars and will own, operate and manage 60 casinos-resorts in 16 states. The board of directors of the company will be composed of 11 members, six of whom will come from Eldorado and five from Caesars.

Icahn said he was "satisfied" by the announcement of the agreement.

"It is rare that you see a merger in which due to the great synergies 'one plus one equals five' I hope our investment will prosper," he said in a statement.

The price of the agreement represents a premium of 51% over Caesar's trading price the day before the Icahn representatives joined the Caesars board on March 1.

In a parallel agreement, the combined company will sell part of its real estate to VICI Properties Inc., while generating $ 3.2 billion in revenue to help pay off the debt.

J.P. Morgan, Credit Suisse, and Macquarie Capital were financial advisors to Eldorado, while Milbank LLP and Latham & Watkins LLP acted as legal advisors.

PJT Partners advised Caesars on the deal, while Skadden, Arps, Slate, Meagher & Flom LLP were his legal advisors.