Eldorado Resorts, Caesars Shareholders Vote to Tie The Knot
Eldorado Resorts, Inc. (NASDAQ:ERI) and Caesars Entertainment Corp. (NASDAQ:CZR) investors today overwhelmingly voted in favor of the regional gaming company’s $17.3 billion takeover of the Caesars Palace operator. One of the biggest deals in gaming industry history is almost official after Eldorado and Caesars investors voted in favor of a $17.3 billion combination.
Each company held special shareholder meetings on Friday in Nevada – Eldorado in its home city of Reno and Caesars at the Tuscana Chapel inside Caesars Palace on the Las Vegas Strip. Eldorado investors voted in favor of the issuance of $8.5 billion in new common stock to fund the equity portion of the acquisition. The company is also taking on $8.8 billion in Caesars debt.
"Holders of over 99% of the Eldorado shares that voted on the issuance of shares of Eldorado common stock in connection with transactions contemplated by the merger agreement with Caesars cast their votes in favor, representing approximately 87% of Eldorado’s outstanding common stock as of the record date for the Eldorado stockholder meeting,” said the regional gaming company.
The takeover values Caesars at about $13 a share, well above the $10.50 to $11 per share analysts expected a buyer would pay for the Harrah’s operator prior to news of the proposal becoming official. Eldorado formally announced its offer for Caesars on June 24, ending months of speculation about the fate of one of the largest Strip operators.
Billionaire financier Carl Icahn, who attained a board seat, installed Tony Rodio as chief executive officer and then pushed Caesars to find a suitor, signed off on the deal several months ago.
Eldorado confirmed today that its purchase of Caesars is on pace to close in the first half of next year, though some analysts believe it’s possible that the companies officially combine in the first quarter. The new company will retain the Caesars name, but will be majority owned by Eldorado shareholders with that firm’s management team, led by CEO Tom Reeg, running the day-to-day operations.
Eldorado owns and operates 26 gaming properties in 12 states, but the Caesars transaction brings the regional firm its first entry onto the Strip. Even with several recently announced asset sales, the new Caesars will operate approximately 60 gaming venues across the US.
