Recently, the Nevada gaming commissioners gave its approval for Caesars Entertainment Inc to spinoff its Planet Hollywood Resort, as well as its interactive gaming business, along with a planned Baltimore casino, all into a new and separate company which will be owned by Caesars Entertainment.
According to company officials the new transaction may be able to close by fall of this year. Even so, the new restructuring plan still requires approval from both the SEC (Securities and Exchange Commission) as well as the Maryland gaming regulators.
Caesars now controls over 50 casinos and hotels which are located throughout the U.S. It has said that the new plan will give the company potential growth investments as well improve its balance sheet. The company also runs 10 casinos and other businesses that are either on the Strip in Las Vegas or just off the strip. As one might expect, Caesars is considered a major player in the Vegas area.
According to Caesars officials, the newly formed Caesars Acquisition will be known as Caesars Growth Partners. It will include Caesars Interactive Entertainment, Planet Hollywood, and will also include the Horseshoe Casino Baltimore which is under development and expected to open in 2015.
The company reported in a SEC filing they plan to raise an estimated $1.18 billion through selling stock which will be under the new public entity name. Additional funding will come through private equity groups, Apollo Global Management and TPG Global.
It was also reported that up to 70 percent of the new company may be owned by Caesars Entertainment and TPG Global and Apollo Global Management. The latter two are private equity groups and they are expected to invest approximately $500 million into the new venture. It was also reported that Caesars will be allowed to bring the businesses back into CE Inc after a five year period. No information was released on just how that might occur or if Caesars is planning to move forward with that plan in the short or long term future. For those who enjoy these venues, on terms of business operations, nothing is expected to be changed and customers will find the same quality service that they now experience.
For those who may not know, Caesars Interactive operates the social gaming Playtika as well as the very popular World Series of Poker (WSOP) and it considered by many industry experts to have a huge potential for the company. It is considered one of the company’s most attractive and lucrative operations. In addition, it has been announced that Caesars is planning to launch regulated and legal World Series of Poker websites located in both New Jersey and Nevada. This may prove to be a real boon for the company as the WSOP is now a globally known brand.
In addition, it was announced that Caesars Growth Partners will also be able to earn management fees from the very popular Planet Hollywood. Also fees can be earned from the new Horseshoe Baltimore which is expected to open sometime in 2015.