Caesars news for Monday about the company merging with Eldorado Resorts has CZR stock up.
Eldorado Resorts (NADAQ:ERI) says that this deal will have it acquiring all outstanding shares of Caesars (NASDAQ:CZR) stock. This will have it paying $12.75 per share per share for CZR stock. This comes in the form of $8.40 in cash and 0.0899 shares of ERI stock for each share of CZR stock.
The offer from Eldorado Resorts to acquire Caesars for $12.75 per share is a decent premium over the stock’s closing price on Friday. This has the offer sitting at roughly 28% above the stock’s last closing price.
The Caesars news about the deal also details how the new company will be split between shareholders. Owners of ERI stock will own 51% of the new company. This has holders of CZR stock owning the remaining 49% of the new company.
The total value of the deal to merge Eldorado Resorts and Caesars comes to $17.30 billion. This includes “$7.2 billion in cash, approximately 77 million Eldorado common shares and the assumption of Caesars outstanding net debt.”
If all goes well with the merger, the new company will continue to carry the Caesars name and will still trade on the Nasdaq Global Select Market. The new Board of Directors will include six ERI members and five CZR members. The two companies are expecting the deal to close during the first half of 2020.
CZR stock was up 15% and ERI stock was down 11% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.