The casino company Caesars Entertainment has announced that it is dropping out of the race and won’t pursue an integrated resort in Japan.
Japan.- Caesars Entertainment Corp announced on Thursday its decision to no longer pursue an integrated resort (IR) licence in Japan. The casino company dropped out of the race to focus on the merger with Eldorado Resorts, which will happen next year.
The operator said that it came up with the decision out of respect to the Japanese government and business partners. CEO Tony Radio said that they needed to announce this as the casino process in Japan is in full force.
“As Caesars has pursued a licence to operate in Japan over many years, we have been treated with respect and goodwill by the Japanese government, business and community leaders, and with kindness by all the Japanese people we have encountered during this journey,” Caesars Chairman Jim Hunt said, according to Bloomberg News.
The merger with Eldorado
The merger between the companies will create the largest US gaming company. The companies revealed that they agreed on an equity value of US$12.75 a share in a mix of cash and Eldorado stock. This represents a premium of approximately 28% to Caesars’s June 21 closing price. With debt included, the deal is worth approximately US$17.3 billion.
After the announcement of the deal, Caesars’ shares increased 13% to US$11.25 in pre-market trading, while Eldorado fell 6.8%. Eldorado and Caesars shareholders will hold approximately 51% and 49% of the combined company’s outstanding shares, respectively.
Upon completion of the transaction, the combined company will retain the Caesars name. They want to capitalise on the value of the brand and its legacy of leadership in the global gaming industry. After merging, the new company will continue to trade on the Nasdaq Global Select Market.