Eldorado’s merger still not on state regulator’s agenda
The state gambling regulator will meet to discuss licensing actions and Eldorado’s recent merger is not included on the agenda.
US.- The Casino Control Commission (CCC) of New Jersey met yesterday to discuss a series of licensing and executive actions. Though the biggest news in the state revolved around the merger between Eldorado and Caesars, the state regulator did not discuss it during yesterday’s meeting.
The CCC considered licensing actions such as Hard Rock Hotel & Casino’s president Joe Lupo, among other things. The next meeting, which could possibly include Eldorado and Caesars’ merger, will take place on August 7, 2019 at the Joseph P. Lordi Public Meeting Room.
The proposed deal needs the approval by shareholders of both companies and the Federal Trade Commission (FTC). If Eldorado receives the green light from the state regulator, Caesars would be in charge of 60 casinos in 16 different states.
The merger
The companies agreed on an equity value of US$12.75 a share — in a mix of cash and Eldorado stock — representing a premium of approximately 28% to Caesars’s June 21 closing price. With debt included, the deal is worth approximately US$17.3 billion.
Upon completion of the transaction, the combined company will retain the Caesars name to capitalise on the value of the iconic global brand and its legacy of leadership in the global gaming industry. The new company will continue to trade on the Nasdaq Global Select Market.
The agreement includes that VICI Properties and Eldorado agreed that the former will acquire the real estate associated with Harrah’s Resort Atlantic City, Harrah’s Laughlin Hotel & Casino, and Harrah’s New Orleans Hotel & Casino for approximately US$1.8 billion.
