Tilman Fertitta targets Las Vegas casino
After failing to acquire Caesars Entertainment, Houston billionaire Tilman Fertitta announced he’ll buy one of its Las Vegas casino operations, set to be sold.
US.- Eldorado Resorts acquired Caesars Entertainment and became the most powerful operator in the US. However, to avoid federal antitrust issues, the company will have to sell some of its newly-acquired nine casinos.
Houston billionaire Tilman Fertitta – who failed to purchase the company – announced he’ll take a Las Vegas casino. “100 per cent, I’m interested,” Fertitta said. “I’ll try to pick off one or two properties.”
On the Las Vegas Strip, potential sales are Bally’s, Caesars Palace, Cromwell, Flamingo, Harrah’s, Linq Hotel and Promenade, Paris, Planet Hollywood and nearby Rio.
Fertitta is a top tourism businessman, TV star and NBA team owner, but wants to expand his presence. His current possessions include restaurants, hotels, amusement parks and five Golden Nugget casinos.
“You go where the people are,” Fertitta said about a Las Vegas casino acquisition. “If you go where the people are, you’ll usually be successful.”
Eldorado’s deal
Eldorado Resorts, Inc and Caesars Entertainment Corporation have announced that they have entered into a definitive merger agreement. 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 — 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.
After the announcement of the deal, Caesars’ shares increased 13% to US$11.25 in pre-market trading, while Eldorado fell 6.8%. Giving effect to the transaction, Eldorado and Caesars shareholders will hold approximately 51% and 49% of the combined company’s outstanding shares, respectively.
