Icahn sells Tropicana Ent for $1.85b

The casino mogul has announced that his company has agreed to sell its majority-owned Tropicana Entertainment for US$1.85 billion.

US.- Icahn Enterprises announced on Monday that its majority-owned subsidiary, Tropicana Entertainment Inc. entered into a definitive agreement to sell Tropicana’s real estate to Gaming and Leisure Properties, Inc. and to merge its gaming and hotel operations into Eldorado Resorts, Inc, for aggregate consideration of approximately US$1.85 billion.

Carl Icahn, Chairman of Icahn Enterprises, stated: “Icahn Enterprises first acquired an interest in Tropicana in 2008.  Tropicana was bankrupt and desperately needed new leadership.  At that time, we identified this undervalued asset as being a perfect situation to deploy our modus operandi, by which we seek to acquire undervalued assets, nurture, guide and improve their condition and operations, and to ultimately greatly enhance value for all shareholders.

“By hiring a great CEO in Tony Rodio and a great management team, and by reinvesting every single penny of profits back into the company, we turned Tropicana into a great casino company that today owns seven casinos.  We thank Tony, the management team and all Tropicana’s employees.  Without them, this could never have been accomplished.”

The transaction does not include Tropicana’s Aruba assets, which will be disposed of as a condition to closing. The aggregate consideration of approximately US$1.85 billion will be increased by the amount of the net proceeds received in connection with the Aruba disposition and will be further adjusted to pay corporate-level taxes.

The transaction is expected to close in the second half of 2018, subject to receipt of required gaming approvals, termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other customary closing conditions. The transaction is not subject to any financing condition.