Eldorado Resorts bets the farm on a Caesars Entertainment turnaround. johnsfoley
Eldorado Resorts said on June 24 that it had agreed to buy rival casino operator Caesars Entertainment for around $8.5 billion in cash and shares.
Under the terms of the deal, Caesars shareholders will receive $8.40 per share in cash and 0.0899 shares of Eldorado per Caesars share, which the buyer values at $12.75 in total – a 28% premium to the closing price on June 21. Eldorado shareholders will hold 51% of the merged company, and Caesars’ owners will hold 49%.
Eldorado said it hoped to create $500 million in synergies in the first year after the deal closes, some from higher revenue. Icahn Associates, the investment company of Carl Icahn, holds a 15% direct stake in Caesars according to Refinitiv data, and earlier in 2019 its representatives joined the gaming company’s board. Icahn issued a statement saying he was “pleased” by the announcement of the deal.
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