The financial entity will sell 17 percent holding in Las Vegas gambling group.
US.- Deutsche Bank announced that they will sell a US$400 million stake in a Las Vegas gambling group. The company will cash in on a 17 holding in Red Rock Resorts and it will boost the bank at a time where concerning over its balance sheet is rising.
The operator of more than a 12 casinos in Nevada and California confirmed that Deutsche Bank will sell the entire 17 percent of its holding. The purchase could generate almost half of a billion dollars to the German bank. Fidelity and Oaktree, other two investors in the group, will also sell all their stakes that represents 6.9 and 3.8 percent from the total.
The bank shares are still 23 percent down on the year. Deutsche Bank’s chief financial officer, Marcus Schenk, said that the bank is expecting to book a profit on its Red Rock stake in the fourth quarter. “From a de-risking cost point of view, we certainly do expect this to be a quarter that will not be a burden as much as the previous quarters,” he added.
Earlier this month Red Rock Resorts finished the acquisition of the Palms Casino Resort, a property almost a mile away from the Las Vegas Strip.