Eldorado and Caesars set date for shareholders meeting

Caesars Entertainment and Eldorado Resorts have scheduled shareholders meetings to discuss the terms of the two casino giants’ upcoming merger.

It was announced back in June that Eldorado had agreed to buy out Caesars in a deal valued at over $17 billion, with Eldorado to pay $8.5bn in cash and stock while taking on $8.8bn of Caesars’ debt.

The shareholders meeting is set to take place on Friday, November 15 and will be hosted at the Eldorado Resort Casino in Reno, Nevada. Eldorado and Caesars will each have separate meetings in order to talk about various aspects of the merger. There will be a vote with the shareholders for the approval of the stock transfer between the companies, which will effectively decide whether or not the deal goes ahead.

The management of Eldorado seem to have a positive feeling about what will transpire. There has not been any resistance from Caesars as well, as the gaming giant will rid it itself of their massive debt that continues to increase.

Analysts have stated that when factoring in the debt of Caesars that the price per share of the company would get to the figure of $13. Some say that price is a little too high for Caesars, but Eldorado has not backed down from the acquisition.

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Eldorado will want to iron out any issues for the deal, which must be finalized by March 25, 2020. If the deal is not finalized by that date Eldorado will have to pay a daily amount until it is a done deal.

Getting to an agreement on a successful vote on the deal in November is very important, as then the United States Securities and Exchange Commission (SEC) will have to give their approval of the deal for the merger of the two casino operators.

Carl Icahn, who is a billionaire and led a group of lenders to buy Tropicana Casino & Resort Atlantic City in 2010, has stated on record that he is supportive of the deal. When the deal was announced in June it was reported by the New York Times that there was friction internally at Caesars. The first thing that was reported is that the Caesars shareholders were unhappy with the financial terms of the deal. However, it seems that things have smoothed over, as Caesars is now behind the deal going through. Icahn’s support of the deal is a big issue considering he is a major shareholder in Caesars holding a stake of 28.5% of the company.

The board of directors of both Caesars and Eldorado have made the recommendation to their shareholders that they give their approval of the deal. This would make it so the deal would be complete by the March 2020 deadline and forgo the problems that could arise if the deal is not complete by that time.

If the deal is complete and comes together according to plan the new company would have a huge presence in the United States, as there will be around 60 of the best casino resorts in the country. The casino resorts would have in excess of 3,700 table games and 71,000 slot machines. On top of that the guest capacity would be just over 50,000 rooms.

With the deal not finalized yet and with Caesars still with piling debt is looks as of the proposed $700 million casino and resort in South Korea is unlikely to move forward.

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