US based casino operator Eldorado Resorts Inc. have recently announced that they have come to an agreement with Caesars Entertainment Corp to merge in an $18 billion cash and stock deal. The merger values Caesars at $18 billion including the company’s outstanding debts, it was reported on Sunday. The agreement between the two companies comes just three months after it was reported that Caesars had agreed to give Eldorado access to their financial records after Caesar was put under pressure by billionaire investor Carl Icahn, who at the start of the year was awarded with seats on the board of the company.
The deal which is set to be officially announced this week puts a value on Caesar shares at $13. When the deal is finalized, the combined company’s ownership will be split between shareholders of both companies. The source who is close to the deal, has asked to remain anonymous due to the confidential nature of the matter. A spokesperson for Eldorado has said that the company will not comment on current rumors or speculation regarding the merger and a representative for Caesars was unavailable for comment at this time.
A combination of these two already large companies, would create a much needed competitor to larger players in the casino industry, including Wynn Resorts, and MGM resorts international.
In Friday’s trading we saw Caesars shares close at $9.99 which is good news for the company who are bouncing back from their bankruptcy filings in 2017. Caesars is a well-known player in the casino sector, with over 50 properties in 14 of the US States, and five countries around the world. Eldorado themselves are a smaller player, valued at $4 billion, although having long term debt reported at the end of March in the region of $3.1 billion. The company own and operate 26 properties in 12 US states. The combination of these two would make a force to be reckoned with, not just in the US but with Eldorado Resorts having access to a global market as well.
Simon Xi Long – IEC International
Company :-IEC International