NewsFeeder
06-24-2019, 05:55 AM
Caesars' stock soars after Eldorado buyout deal values casino operator at about $8.7 billion
Shares of Caesars Entertainment Corp. soared 16% toward an 11-month high in premarket trading Monday, after the casino operator agreed to be bought out by Eldorado Resorts Inc. in a deal that values Caesars at about $8.7 billion. Under terms of the deal, Caesars shareholders will receive a value of $12.75 for each share they own, which represents a 28% premium to Friday's stock closing price. The buyout bid consists of $8.40 in cash and 0.0899 Eldorado shares, based on the 30-day volume-weighted average price of Eldorado shares as of May 23. The total value of the deal is $17.3 billion, including $7.2 billion in cash, 77 million Eldorado shares and the assumption of Caesars debt. "Eldorado's combination with Caesars will create the largest owner and operator of U.S. gaming assets and is a strategically, financially and operationally compelling opportunity that brings immediate and long-term value to stakeholders of both companies," said Eldorado Chief Executive Tom Reeg. Separately, Eldorado announced a deal with VICI Properties Inc. in which VICI will buy the real estate associated with three Harrah's branded assets for $1.8 billion and leases to two casino assets are amended. Eldorado's stock dropped 6.1% ahead of the open while VICI shares were still inactive. Caesars' stock has rallied 15% over the past three months while the S&P 500 has gained 5.4%.
https://finance.yahoo.com/m/e643e378-83dd-3c02-8929-56b62af78904/caesars%26apos%3B-stock-soars.html?.tsrc=rss
Shares of Caesars Entertainment Corp. soared 16% toward an 11-month high in premarket trading Monday, after the casino operator agreed to be bought out by Eldorado Resorts Inc. in a deal that values Caesars at about $8.7 billion. Under terms of the deal, Caesars shareholders will receive a value of $12.75 for each share they own, which represents a 28% premium to Friday's stock closing price. The buyout bid consists of $8.40 in cash and 0.0899 Eldorado shares, based on the 30-day volume-weighted average price of Eldorado shares as of May 23. The total value of the deal is $17.3 billion, including $7.2 billion in cash, 77 million Eldorado shares and the assumption of Caesars debt. "Eldorado's combination with Caesars will create the largest owner and operator of U.S. gaming assets and is a strategically, financially and operationally compelling opportunity that brings immediate and long-term value to stakeholders of both companies," said Eldorado Chief Executive Tom Reeg. Separately, Eldorado announced a deal with VICI Properties Inc. in which VICI will buy the real estate associated with three Harrah's branded assets for $1.8 billion and leases to two casino assets are amended. Eldorado's stock dropped 6.1% ahead of the open while VICI shares were still inactive. Caesars' stock has rallied 15% over the past three months while the S&P 500 has gained 5.4%.
https://finance.yahoo.com/m/e643e378-83dd-3c02-8929-56b62af78904/caesars%26apos%3B-stock-soars.html?.tsrc=rss