The proposed acquisition of US casino firm Caesars Entertainment, Inc by businessmen Tilman and Paige Fertitta has moved one step closer to reality after Ceasars shareholders approved the takeover overnight.
The company revealed via an SEC filing that around 93% of votes cast at a special meeting of stockholders were in favor of the acquisition, with 133,313,001 votes for versus 4,276,986 against and 5,687,952 abstentions. Holders of 143.3 million shares were present at the meeting, representing 70.3% of outstanding shares.
Shareholder approval clears a major hurdle for completion of the acquisition although closure still depends upon regulatory approvals and financing.
As previously reported by Inside Asian Gaming, Fertitta Entertainment, Inc is looking to acquire Ceasars for around US$17.6 million, including the assumption of US$11.9 billion of Caesars’ outstanding debt.
This would see Caesars shareholders receive US$31.00 in cash for each outstanding Caesars share, to be financed through a combination of equity contributed by Fertitta Entertainment, assumed Caesars’ debt and new committed debt financing arranged by a group consisting of 10 banks.
Fertitta Entertainment’s existing assets include the Golden Nugget brand, which operates casinos in seven US cities including Las Vegas and Atlantic City, NBA franchise the Houston Rockets and more than 450 restaurants globally. Tilman Fertitta is also the largest individual shareholder in Wynn Resorts with a 12.3% stake.
By acquiring Caesars, the group will add, among other assets, Caesars’ eight Las Vegas casinos: Caesars Palace, Harrah’s, Paris Las Vegas, Planet Hollywood, Horseshoe, The LINQ Hotel, Flamingo and The Cromwell.
Fertitta Entertainment earlier this year said it expects the leadership teams of both companies to remain in their current roles and continue to lead the combined companies’ operations.
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