Fertitta Entertainment has agreed to purchase Caesars Entertainment for around $17.6 billion
Caesars Entertainment has announced an agreement to be purchased by Fertitta Entertainment for an all-cash sum of about $17.6b. The massive transaction includes assuming around $11.9b in outstanding debts currently held by the casino operator.
Under the terms detailed in an official press release, stockholders will receive a payout of $31.00 per share. This cash payout represents a 49% premium above the stock price recorded on February 25, which was the final trading day before public reports of a potential acquisition surfaced.
The agreed amount also delivers a 46% premium over the 30-day volume-weighted average price of the stock. Ten banking institutions have already committed the necessary financing to back the transaction, and the Caesars board has formally approved the proposal while recommending full shareholder support.
Because the committed financing is fully secured, no financing conditions are attached to the completion of the merger. A special provision allows the casino company to actively solicit alternative bids from other interested buyers through July 11, which follows a prior separate approach from billionaire investor Carl Icahn at $33 per share.
The combined corporate entity will control a staggering array of gaming and hospitality assets across the country. The final portfolio encompasses 60 casino properties, online gaming operations, and sports gambling handled through the William Hill brand at more than 200 locations.
It also integrates hundreds of restaurants and entertainment venues owned by the buyers, such as Mastro’s and Morton’s. Current corporate leadership is expected to stay in place to manage these combined operations, and the existing rewards loyalty program will likely continue serving its 65 million members.
