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Eldorado and Caesars agree $17.3bn merger

| By iGB Editorial Team
Eldorado Resorts and Caesars Entertainment Corporation have entered into a definitive merger agreement that will create a new market leader in the US gambling sector. 

Eldorado Resorts and Caesars Entertainment Corporation have entered into a definitive merger agreement that will create a new market leader in the US gambling sector. 

The deal will see Eldorado acquire all outstanding shares in Caesars for a value of $12.75 per share, consisting of $8.40 per share in cash, and 0.0899 shares of Eldorado common stock, for a total consideration of around $17.3bn. This breaks down to $7.2bn in cash, and approximately 77m Eldorado common shares, and sees the operator assume Caesars’ net debt. 

Upon closing, Eldorado shareholders will hold 51% of the combined entity’s outstanding shares. A new, 11-member board will be established, with six directors coming from Eldorado’s board, and five from Caesars.

The new business, which will operate around 60 casino resorts and gaming facilities across 16 states, will operate under the Caesars name, and continue to trade on the Nasdaq Global Select Market.

“Eldorado’s combination with Caesars will create the largest owner and operator of US gaming assets and is a strategically, financially and operationally compelling opportunity that brings immediate and long-term value to stakeholders of both companies,” Eldorado chief executive Tom Reeg said. “Together, we will have an extremely powerful suite of iconic gaming and entertainment brands, as well as valuable strategic alliances with industry leaders in sports betting and online gaming. 

“The combined entity will serve customers in essentially every major US gaming market and will marry best-of-breed practices from both entities to ensure high levels of customer satisfaction and significant shareholder returns.”

Read the full story on iGB North America.

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