Casino operator Caesars Entertainment (CZR) has agreed to be taken private by Houston-based Fertitta Entertainment in an all-cash deal valued at $17.6 billion U.S.
Stockholders of Caesars Entertainment will receive $31 U.S. in cash for each share they own.
The amount represents a 49% premium over the stock’s closing price of $20.77 U.S. on Feb. 25 of this year, the last day before Caesars received a bid from Fertitta.
The deal includes the assumption of $11.9 billion U.S. in debt. The casino company’s board of directors has approved the transaction and is urging shareholders to approve it too.
Caesars has until July 11 to consider any competing proposals it receives up until that date. There have not been any reports of competing bids for the company.
Fertitta Entertainment is a Texas-based holding company that operates a portfolio of dining, hospitality, entertainment, and gaming businesses.
Caesars has struggled since the Covid-19 pandemic forced its casinos to close and operate at reduced capacity.
CZR stock is down 73% in the last five years and currently trading at $28.78 U.S. per share.
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