Eastern European casino operator Olympic Entertainment Group has signed a deal to sell its 100% interest in the firm behind the Hilton Tallinn Park hotel complex to East Capital subsidiary ECB3 Tallinn for $52.7 million.
Owned by Olympic Entertainment Group subsidiary Jessy Investments via fellow subordinate Kesklinna Hotelli, the Estonian venue opened earlier this year and is home to the Olympic Park Casino, which is run by ancillary firm Olympic Casino Eesti under a long-term lease agreement.
“The aim of the sales transaction is to release capital that has been invested into real estate and to focus on the core business of the group’ operating casino and entertainment complexes,” read a statement from Olympic Entertainment Group, which operates almost 160 casinos, betting shops and gaming centers in Estonia, Latvia, Lithuania, Poland, Slovakia, Belarus, Italy and Malta. “The hotel and casino operations that are in the building are not part of the sales transaction and will continue to be owned by Olympic Entertainment Group.”
After taking transaction-related costs into account, Olympic Entertainment Group declared that its profit from the sale of its stake in the firm behind the Hilton Tallinn Park is expected to reach $18.7 million with its non-current assets decreasing by approximately $33 million alongside a $27.4 million drop in liabilities. It stated that the transaction is subject to customary conditions such as an approval by the Estonian Competition Authority and will give ECB3Tallinn the right to replace Kesklinna Hotelli boss Meelis Pielberg with someone of its own choosing.
“Kesklinna Hotelli is not involved in any court or arbitration proceedings that could have a significant effect on the business activity of the company,” read the statement from Olympic Entertainment Group. “[This] transaction is not considered to be a transaction with related parties [and] the management board and the supervisory board members of Olympic Entertainment Group are not personally interested in this transaction in any other way.”