Fertitta Entertainment Agrees $17.6bn Takeover of Caesars
The transaction, led by billionaire businessman Tilman Fertitta, includes approximately $11.9bn of existing Caesars debt and values the company at a significant premium to its market price before takeover speculation emerged earlier this year.
Caesars Entertainment has agreed to a $17.6bn takeover by Fertitta Entertainment, with the deal set to take the casino giant private if approved by shareholders and regulators.
The transaction, led by billionaire businessman Tilman Fertitta, includes approximately $11.9bn of existing Caesars debt and values the company at a significant premium to its market price before takeover speculation emerged earlier this year.
Fertitta, whose business interests span gaming, hospitality, dining and professional sports, already oversees a vast portfolio that includes the Golden Nugget casino brand, restaurant operator Landry’s and the NBA’s Houston Rockets. The acquisition would further strengthen his presence across the leisure and entertainment sectors.
Caesars’ board has unanimously recommended the offer, which would see shareholders receive $31 per share in cash. The company has also indicated that its senior leadership team, including chief executive Tom Reeg, chief financial officer Bret Yunker and president and chief operating officer Anthony Carano, are expected to remain in place following completion of the deal.
“Together, Caesars and Fertitta Entertainment have a shared commitment to operational excellence, customer service and disciplined growth, with employees and guests remaining at the heart of the business,” Caesars said in a statement.
The acquisition is expected to be funded through a combination of Fertitta Entertainment equity, assumed Caesars debt and new financing provided by a consortium of banks. Caesars added that it will continue to consider any alternative proposals during a designated review period running until 11 July.
If completed, the merger would create one of the largest integrated gaming and hospitality groups in North America. The combined business would encompass dozens of casino resorts, a major online betting and gaming operation, more than 200 retail sportsbook locations under the William Hill brand and hundreds of restaurants and entertainment venues operated by Fertitta Entertainment.
Caesars said the enlarged group would bring together a broad range of gaming, hospitality and leisure assets, with customers connected through the Caesars Rewards loyalty programme across both businesses.
