Chile and Argentina gaming, lodging, and restaurant operator, Enjoy SA is getting ready to pick up the remaining 55 percent of shares in the Conrad Punta del Este Resort in Uraguay from Caesars Entertainment Corporation (NASDAQ: CZR) subsidiary Baluma S.A. The move would complete an acquisition that began with a 2012 agreement consummated in 2013 when Enjoy took on a 45 percent ownership position and took over operations of the prestigious casino resort.
G3NewsWire reports that Enjoy has announced to the Chile securities and insurance regulator (SVS) that it will adjust its debt limit upwards in order to raise the capital needed for the acquisition. Having sought agreement with their bond holders, Enjoy will now be able to raise as much as US$500m for the purchase.
In order to assume the first 45 percent of the Conrad, Enjoy paid Caesars US$139.5m in cash and stock while Caesars became a 10 percent shareholder in Enjoy S.A., in what was billed as a ‘strategic relationship’.
On November 12, 2012, Gary Loveman, former President and Chief Executive Officer and current Chairman of the Board of Caesars Entertainment said, “Enjoy’s strong regional expertise combined with Caesars’ global network and operating proficiency will create a strong value proposition for customers of Punta Del Este and Enjoy’s portfolio of properties,” according to a press release of that date.
The release further stated that Enjoy would have the option to acquire the remaining stake in Baluma S.A, between years three and five of the relationship while Caesars would have the right to nominate one member to the Enjoy Board. According to Bloomberg, Thomas Jenkin of Caesars currently sits on the Enjoy board.
Enjoy SA own and operates hotels and casinos in Chile and Argentina, and is the leading casino concern in Chile operating casinos and five-star hotels in the cities of Antofagasta, Coquimbo, Vina del Mar, Rinconada, Santa Cruz, and Pucon as well as a casino in Mendoza, Argentina.
According to the G3 report, Enjoy is expanding in the region and inked a Memorandum of Understanding with the Decameron hotel chain for three casinos with the hotelier, the first of which began operations in February 2016 on the island of San Andrés, Colombia.
In other news related to Caesars and the Conrad Punta Del Este Resort and Casino:
Tuesday Caesars announced that their bankruptcy restructuring plan had been approved by the court and the company expects to emerge from Chapter 11 sometime this year after merging with their acquisition unit and spinning off a real estate investment trust that will own virtually all property assets.
Earlier this year, Brazilian entrepreneur, Pedro Grendene Bartelle got lucky betting on a single number at the Conrad casino and took down 35 times his roulette bet, the wager has been reported as either being $35,000 or $100,000.
This article has been updated to correct a typographical error in the final sentence and to identify the game played as roulette.