Shareholders of Eldorado Resorts and Caesars Entertainment Corporation, are scheduled to vote on proposed $17.3 billion merger on November 15, according to a joint statement.
The merger agreed in June and would see Eldorado buying up Caesars’ stock, assuming control over it as a result. As part of the agreement, Eldorado will pick up Caesars for $8.5 billion in cash and stock. Will assume the target’s $8.8 billion debt. The equity value of $12.75 a share, represents a premium of about 28% to Caesars’s closing price at the time the deal.
If a deal occurs , Caesars will merge with Eldorado and become a fully owned subsidiary of Eldorado, keeping it’s Caesars name.
In addition, the two companies announced newly created company’s directors. Eldorado’s six members are Chairman Gary Carano, CEO Thomas Reeg, directors David Tomick, Frank Fahrenkopf, Michael Pegram and Bonnie Biumi. Caesars’ slate comprises Keith Cozza, Jan Jones, Blackhurst, Don Kornstein, Courtney Mather and James Nelson.
Caesar’s was still reeling from the affects of the failed buyout in 2008 that left Caesar’s with a large debt. Apollo and TPG sold their shares since. Caesar’s completed a bankruptcy of its largest unit in 2017 that brought in new board members and shareholders.
Carl Icahn, owns 16.83% of Caesars common stock. Initially Icahn opposed the deal but later praised the board for “acting responsibly and decisively in negotiating the transaction.”