Eldorado Resorts, an American hotel and casino company, has agreed to acquire Caesars Entertainment in a cash-and-stock transaction with a total value of $17.3 billion.
This $17.3bn figure comprises $7.2bn in cash, approximately 77 million Eldorado common shares, and the assumption of Caesars outstanding net debt.
Website Macrotrends.net lists Caesars’ long term debt at $18.78bn as of 31/3/2019.
The combined company will retain the Caesars name, providing its guests with access to approximately 60 domestic casino–resorts and gaming facilities across 16 US states. This will include Caesars’ iconic Las Vegas venues, including Caesar’s Palace.
After the deal is complete, Eldorado would own 51% of the combined company and Caesars would hold 49%.
The transaction is subject to approval of the stockholders of Eldorado and Caesars, as well as the approval of applicable gaming authorities, and is expected to be completed in the first half of 2020.
“Together, we will have an extremely powerful suite of iconic gaming and entertainment brands, as well as valuable strategic alliances with industry leaders.”
Eldorado CEO Tom Reeg commented: “Eldorado’s combination with Caesars will create the largest owner and operator of U.S. gaming assets. This 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.
“The combined entity will serve customers in essentially every major U.S. gaming market and will marry best-of-breed practices from both entities to ensure high levels of customer satisfaction and significant shareholder returns.”
Caesars Entertainment is currently in the process of constructing Caesar’s Forum in Las Vegas, a $375m, 60,000sqm event venue it unveiled last July. Caesars Forum will contain the world’s largest pillarless ballroom, and is within walking distance of more than 20,000 Caesars hotel rooms in Las Vegas.
Caesars has 50 casinos in 13 states and five countries, including Caesars Palace and several others along the Las Vegas Strip.
Jim Hunt, Chairman of Caesars, said: “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.”