Fertitta Entertainment, the multinational gaming and hospitality giant owned by billionaire Tilman Fertitta, has gone all in with its latest acquisition.
Fertitta owns the Golden Nugget Hotel and Casinos chain and the restaurant company Landry’s, as well as the basketball team the Houston Rockets. Now, the billionaire has acquired famed Las Vegas casino operator Caesars Entertainment in a deal valued at a monumental $17.6 billion, the company announced Thursday. As part of the deal, Fertitta will add Caesars’ more than 50 resorts to its portfolio.
The all-cash transaction includes the assumption of approximately $11.9 billion of Caesars’ outstanding debt, and will result in the company going private. Part of the deal will see Caesars shareholders receive $31 per share in cash, which represents 49 percent of the unaffected share price, as of Feb. 25.
A representative for Caesars declined to comment on the deal, while a spokesperson for Fertitta Entertainment did not immediately respond to a request for comment.
“Fertitta Entertainment brings a proven operating model with a track record of successfully integrating and growing leading hospitality and entertainment businesses,” the companies wrote in a joint announcement Thursday. “The transaction positions Caesars to continue executing on the strategy that has made it the leading casino-entertainment company in the United States.”
PJT Partners is serving as the exclusive financial adviser for the deal. Representatives for the firm did not immediately respond to a request for comment.
Shares of Caesars had risen by over 2.5 percent in pre-market trading Thursday morning, and opened in the green above 1 percent at the bell.
Completion of the deal comes after Fertitta made a $7 billion bid for Caesars back in March, Commercial Observer had previously reported, beating a competing offer from the firm of billionaire investor Carl Icahn. (Fertitta’s new deal — with an equity value of about $5.7 billion — is lower than his initial bid.)
Caesars CEO Tom Reeg, Chief Financial Officer Bret Yunker, and President and Chief Operating Officer Anthony Carano are all expected to remain in their positions leading Caesars’ operations at the combined company.
No expected closing date was announced.
Amanda Schiavo can be reached at [email protected].
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source commercialobserver.com ’
