Caesars Acquisition shareholders will receive 27 percent of the merged entity instead of 38 percent.
US.- Caesars announced some amendments on the merger agreement between two of its brands, Caesars Entertainment Corp. and Caesars Acquisition Co. The further plan will be intertwined with the US$18 billion bankruptcy of the casino company’s main operating unit.
Caesars reduced in the merger deal, initially proposed in 2014, the percentage granted to Caesars Acquisition shareholders. They originally were going to receive 38 percent of the merged entity, but now the number has dropped to 27 percent.
Meanwhile, the operating unit, Caesars Entertainment Operating Co. Inc. –CEOC–, will begin to seek votes from creditors on its plan to restructure its debt and exit bankruptcy, after a U.S. Bankruptcy judge approved the plan last month.
Caesars’ bankruptcy project aims at reducing US$10 billion of debt and split the CEOC unit into a new operating company and a real estate investment trust. The merger agreement between Caesars Entertainment with Caesars Acquisition will generate part of that money.