In preparation of the pending acquisition of Caesars Entertainment Corp., Eldorado Resorts has announced they will be selling existing properties. This week, the company announced that an agreement had been made to sell one property in Mississippi and one in Missouri to free of cash to use for the acquisition.
Freeing Up Cash:
Eldorado will be selling two properties in anticipation of the deal closing, the Isle of Capri Casino in Kansas City, Missouri and the Lady Luck Casino in Vicksburg, Mississippi. Freeing up the funds will help with the closing of the deal which is set to be finalized by next year.
According to reviewjournal.com…
Eldorado Resorts will be selling the properties to Twin River Worldwide Holdings Inc. The amount of the two sales will total around $230 million in cash.
Surprising Acquisition:
The news of the acquisition of Caesars Entertainment Corp. by Eldorado Resorts came as a surprise back in June. The two had reportedly signed an agreement that would see Eldorado paying as much as $8.58 billion to acquire the majority stake in Caesars.
With the successful completion of the deal, it will create the largest casino firm in the US. It will then have a presence in five overseas jurisdictions including in Canada, Dubai, Egypt, South Africa and the United Kingdom.
All outstanding stock of Caesars Entertainment Corp. will go to Eldorado which will give the company 51% shareholding. The new entity would then maintain the Caesars name and be the operator behind gaming activities inside 76 properties.