Casino Horseshore bought a Baltimore parent company at Eldorado resorts

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Caesars Entertainment, Baltimore's Horseshoe Casino parent, announced that Eldorado centers would be in cash and stock worth $ 17.3 billion, the companies announced on Monday.

The acquisition would create a casino bit of about 60 Casino centers in 16 states under a single name, Caesars, which would create the largest US gaming operator. The goal – after pressure from investor Carl Icahn's agent – is focused on closure in the first half of 2020 if it allows regulators and shareholders to gamble.

“We're very excited. This is an iconic brand, ”said Eldorado CEO, Tom Reeg, referring to Caesars Entertainment during a conference call. “It's really a property and brand level that we don't have the big fortune to control and now we'll be.”

Eldorado will pay $ 8.40 per share in cash and 0.0899 shares of Eldorado stock for each Caesars share, or $ 12.75 per share. The transaction respects Caesars about $ 8.6 billion, and Eldorado will take around $ 8.8 billion for the casino debt.

Shareholders of Eldorado Resorts Inc.. held about 51% of the company's excellent stock, with Caesars Entertainment shareholders retaining the remainder and 49%.

Reeg will lead the company, along with the Chairman of Eldorado, Gary Carano. Its headquarters will be in Reno, Nevada, where Eldorado is established, and will have a significant corporate presence in Las Vegas, where Caesars is based.

The discussion gives its first access to the Las Vegas Strip market.

The discussions took place in months. Earlier this year Icahn showed that he played a major part in Caesars Entertainment and pushed the company 's fundamental changes, including board representation and a replacement for the then CEO. He argued that the company's stock was of low value and that the best way to support it was to sell the company.

Caesars Entertainment Corp, which operates more than 30 casinos in the US, emerged from bankruptcy protection at the end of 2017, but has since struggled.

Icahn appointed the current CEO of Caesars Entertainment in April, Tony Rodio, who played the same role as the billionaire Tropicana Entertainment, which was sold to Eldorado in 2018. He also received board members.

“While I criticized the Board of Caesars when I took up a large number of months ago, I would now like to do something that I rarely do, that is, a board of directors to act responsibly and decisively and negotiate and approve make this transformational transaction, “Icahn said in a prepared Monday statement. “As a joint company, Caesars and Eldorado will be a prime gaming company in America.”

The bankruptcy reorganization led to the creation of the real estate investment trust VICI Properties Inc.. It owns buildings and land more than 20 casino venues, including Caesars Palace on Las Vegas Strip, and sends back operations to casino operators.

Eldorado said on Monday that he also reached agreement with VICI Properties Inc.. where VICI acquires the real estate of Atlantic City of Harrah, Harvard Hotel and Casino Harrah is located about 100 miles south of Las Vegas, and Harrah's New Orleans Hotel and Casino for about $ 1.8 billion.

Caesars works through casinos in Atlantic City and Eldorado works head.

Other terms of the deal include first refusal of VICI for sale transactions or full lease of assets on two Las Vegas Strip properties and the Baltimore Foot Casino.

Baltimore Casino opened in 2014. It is a partnership between Caesars and some local and national investors. The Casino has been buying nearby properties in recent years.

Reeg told analysts and investors that the company expects to sell some properties that might allow it to avoid federal anti-trust issues. He is also assessing whether property should be sold on the Strip.

“As I sit here today, I tell you, I think there is more Strip exposure than we would need to achieve our goals with our regional database,” he said. “So I would expect to be a Strip asset seller, but that decision was not made.” T

It is uncertain whether the new company will enter into Japan, where major casino operators have set their sights after legalization of casino gaming by the nation. Reeg said “there have been no firm decisions” on the international market, but there must be a “prudent opportunity for us to run in that direction”.

Caesars stock jumped 16% on Monday, and Eldorado shares fell 10%.

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