Selling of four casino resorts is agreed to please regulators
Thursday 30th September 2004
Leading casino companies Harrah’s Entertainment Inc and Caesars Entertainment Inc have revealed that they have made an agreement to sell four casino hotels. The sites will be sold to an affiliate of Colony Capital LLC, for an approximate total fee of US$1.24 billion. The deal has been struck in order to satisfy regulator’s demands in relation to the upcoming merger of the two companies.
The intended merger was announced in July of this year, and the companies are required to sell off assets, in order for the US$9.4 billion deal to go ahead. The merger is currently being reviewed by state regulatory agencies and the Federal Trade Commission. The closing of the deal is anticipated to be achieved by mid-2005.
The four venues to be sold are Harrah’s East Chicago, Harrah’s Tunica, the Atlantic City Hilton and Bally’s Tunica. The proceeds gained from the transaction will be used to reduce debt according to a spokesperson from Harrah’s. Colony is a private investment firm, already licensed in gaming. Colony currently owns Resorts International in Atlantic City, and the Las Vegas Hilton, as well as being a partner in Accor Casinos based in Europe.