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 US$8.5 billion in new common stock to fund the equity portion of the acquisition. The company is also taking on US$8.8 billion in Caesars debt.
Should the deal go through as expected, the new business would run around 60 casino resorts and gaming facilities across 16 states. The combined entity would operate under the Caesars name, and continue to trade on the Nasdaq Global Select Market.
Eldorado said it expects to achieve around US$500 million in synergies in the first year following the deal’s completion. Eldorado shareholders would hold 51% of the combined entity’s outstanding shares.
“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 at the time of the original announcement.
Caesars chief executive Tony Rodio added: “We believe this combination will build on the accomplishments and best-in-class operating practices of both companies. We are excited to integrate Caesars Rewards with the combined portfolio.”
Subject to regulatory approval, the deal is expected to be finalized in the first half of 2020.
Source: GMB
