Eldorado Resorts Inc (NASDAQ:ERI) announced plans to acquire Caesars Entertainment Corporation (NASDAQ:CZR) for $18 billion in cash and stock.
The proposed transaction will combine two leading gaming companies with complementary national operating platforms, strong brands, strategic industry alliances, and a collective commitment to enhancing guest service and shareholder value.
The combined company will provide its guests with access to approximately 60 domestic casino–resorts and gaming facilities across 16 states.
The transaction is transformational for each company’s shareholders, employees and customers, combining Eldorado’s operational expertise with Caesars industry-leading loyalty program, regional network and Las Vegas assets.
A news release issued Monday reported that Eldorado will acquire all of the outstanding shares of Caesars for a total value of $12.75 per share, consisting of $8.40 per share in cash consideration and 0.0899 shares of Eldorado common stock for each Caesars share of common stock based on Eldorado’s 30-calendar day volume weighted average price per share as of May 23, reflecting total consideration of approximately $17.3 billion, comprised of $7.2 billion in cash, approximately 77 million Eldorado common shares and the assumption of Caesars outstanding net debt.
Caesars shareholders will be offered a consideration election mechanism that is subject to proration pursuant to the definitive merger agreement. Giving effect to the transaction, Eldorado and Caesars shareholders will hold approximately 51% and 49% of the combined company's outstanding shares, respectively.
Eldorado shares faded $4.22, or 8.2%, first thing Monday morning to $47.00, while Caesars shares gained $1.43, or 14.3%, to $11.42
