Eldorado reportedly secures $18bn Caesars acquisition
Eldorado Resorts and Caesars Entertainment have agreed a cash and stock merger worth $17.3bn, initially valued at $18bn by a Reuters report.
The deal has now been formally announced and includes Caesars’ debt, with the operator’s shares valued at almost $13 per share. Caesars’ shares closed at $9.99 on Friday.
The combined company’s board has six directors from Eldorado and five from Caesars.
In March, the pair opened M & A talks, with Caesars’ largest individual shareholder Carl Icahn being in favour of selling the company.
An original bid, reported to be worth $10.50 per share, was described as underwhelming. Icahn rejected the offer, holding out for a higher fee.
Last week, Eldorado sold three properties to Century Casinos and Vici Properties.
Tony Rodio, Caesars CEO, said: “I’m familiar with Eldorado and its management team, having worked with them on a previous transaction, and I look forward to collaborating with them to bring our companies together.”
Eldorado Resorts CEO Tom Reeg said: “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.”
In a presentation prepared for investors, Eldorado has used public filings to conclude the joint company’s EBITDAR is the largest in the market, at $3.6bn.
MGM Resorts International ranks second in the presentation’s findings, on $2.5bn, and Penn National Gaming sits third on $1.2bn.
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