Caesars Entertainment to Sell Interest in Emerald Resort & Casino to South Africa-Based Peermont Hotels, Casinos and Resorts for $49 Million
May 15, 2019 2:09pm
LAS VEGAS, May 15, 2019 -- Caesars Entertainment Corporation (NASDAQ: CZR) ("Caesars Entertainment" or "Caesars" or the "Company") today announced that it has agreed to sell its South African property Emerald Resort & Casino to Peermont Hotels, Casinos and Resorts, a Johannesburg based hospitality and entertainment company for total proceeds of $49.0 million, which implies a 7.9x multiple on 2018 EBITDA of $6.2mm. Caesars owns 70% of this property while the remaining 30% is owned by local minority partners. Total cash proceeds to Caesars for its 70% ownership and other adjustments total $39 million.
"While Emerald Resort & Casino is a unique property, it receives limited benefit from the Caesars' Rewards network effect given its remoteness to other properties in our network," said Tony Rodio, CEO of Caesars Entertainment. "We're pleased to monetize this non-core asset in our portfolio, which will enable Caesars to sharpen its focus on other strategic markets."
Caesars Entertainment will continue to operate the property until the transaction closes, which is expected to be in the third quarter of 2019, subject to regulatory approvals and other customary closing conditions.
Tags: caesars entertainment corporation,
emerald resort & casino,
peermont hotels, casinos, and resorts,
Caesars Entertainment is one of the world's most diversified casino-entertainment providers and the most geographically diverse U.S. casino-entertainment company. Since its beginning in Reno, Nevada, in 1937, Caesars Entertainment has grown through development of new resorts, expansions and acquisitions. Caesars Entertainment's resorts operate primarily under the Caesars®, Harrah's® and Horseshoe® brand names. Caesars Entertainment's portfolio also includes the Caesars Entertainment UK family of casinos. Caesars Entertainment is focused on building loyalty and value with its guests through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership. Caesars Entertainment is committed to environmental sustainability and energy conservation and recognizes the importance of being a responsible steward of the environment. For more information, please visit www.caesars.com/corporate.
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