New Caesars would run around 60 casino resorts and gaming facilities in 16 states
Shareholders in Caesars Entertainment Corporation and Eldorado Resorts voted last week to approve the proposed merger of the two US operators. In June, it was revealed that Eldorado will acquire all of the outstanding shares in Caesars for a total consideration of around US$17.3bn.
The agreement was subject to stockholder approval at both operators, with holders of over 99% of Eldorado shares, representing approximately 87% of Eldorado’s outstanding common stock, voting in favour of the merger. Holders of over 99% of the Caesars shares, representing around 76% of Caesars’ common stock, also voted to approve the proposed agreement. Subject to regulatory approval, the deal is expected to be finalized in the first half of 2020.
Stockholders at Eldorado and Caesars also approved various other measures in relation to the deal, including the reincorporation of Eldorado from Nevada to Delaware, subject to consummation of the merger. 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$500m 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.”