On Wednesday, July 15th, 2020, a piece of history where made. When the New Jersey Casino Control Commission passed the motion to allow the merge between Eldorado and Caesars. Where the rumors and news came out in June 2019. And the first speculations indicated that the deal would not only get approved. But get executed in the first quarter of 2020. Yet with facts in hand, we know the reason for the prolonged decision making. However, the deal is now green lighten and completed roughly one year from its first notice. And by the look of things, not that much is different from the original plans and suggestions.
Billions changed hands
At the time of the agreement and proposed merge in June 2019, the deal valued to around $17.3 Billion. Yet, not an all-cash deal. Where the cash transaction value sums up to $7.2 Billion. Excluding assumed responsibility of the $8.8 Billion Caesar debt. While the rest of the deal and finances will come in shares. In fact, 77 million of them, in the entity, Eldorado. And after reading through the meeting notes, it’s clear that a lot of weight swaying in favor of the deal came after testimonies from leading industry and financial experts ensuring a fair balance in property-owning in Atlantic City. All in all, the “Eldorado” or the “Company” acquired Caesars; they now control over 50 casinos in 16 different states in the U.S.A.
Conditions in place
Indeed, there were multiple conditions accompanied by the merge. For instance, $400 Million set aside for further investments for the coming 3-years. Now, what we need to do is to follow this story unfold and develop. As it’s far from over. Even if the rubber stamp and paperwork cleared out of the way, the road still paves with hurdles and a somewhat uphill battle. As such, we will monitor this seeming Cinderella story as it grows. Yet, as most experts and media reporting will tell you, it’s going to be a grand success.