Golden Nugget Casinos Approaches Caesers Entertainment For Merger
New reports suggest that Golden Nugget and Caesars Entertainment are in talks for a merger.
Tilman Fertitta, the owner of the Golden Nugget Casino chain, allegedly approached Caesars Entertainment about a merger of his casinos with Caesars Entertainment’s Las Vegas-based casino Caesers Palace.
According to The Financial Times, Fertitta approached Caesers over the last week though officials familiar with the situation have claimed that the deal has yet to be agreed.
Fertitta, who also owns the Houston Rockets basketball team, hopes to make a cash and stock deal that values the casino at $13 per share.
Before the merger can be agreed, however, Fertitta will have to convince private equity firms Apollo Global and TPG Capital to merge Caesers, an investment they’ve supported through Chapter 11 bankruptcy reforms.
When Reuters first broke the story on Wednesday (October 17), Caesers’ stock rose 12%. Meanwhile, Caesers, which is the world’s fourth-largest gaming company, emerged from bankruptcy last year but has watched its stock plummet nearly 20% over the last year.
Pursuing a Merger
Fertitta’s pursuit for a merger comes after Mark Frissora, Caesers’ Chief Executive, announced plans to renovate its hotel rooms, loyalty programme and expanding its hospitality business.
Frissora also shared hopes for launching a sports betting business at the property following the Supreme Court’s decision to overturn a law that had banned the practice.
The NY Post reports that Caesers Entertainment was already considering a deal with Jack Entertainment before news of Fertitta’s offer surfaced.
If Caesers, Apollo Global and TPG Capital all agree to the merger, Fertitta would become chairman, CEO and the largest shareholder of the combined company.