April 20 (Reuters) – Casino operator Caesars Entertainment has extended the period of exclusive talks for an $18 billion takeover by billionaire Tilman Fertitta, Bloomberg News reported on Monday, citing people familiar with the discussions.
Fertitta, the United States ambassador to Italy and San Marino and owner of Fertitta Entertainment, offered $32 per share for the Las Vegas strip’s prized casino operator and would assume over $11 billion in Caesars’ debt, Bloomberg said.
Caesars shares were up 2.1% at $27.80 apiece.
Falling visitation to Las Vegas has impacted revenue for the city’s resorts, hotels and casinos, including Caesars, which has also struggled with its online betting segment to compete with larger peers like FanDuel and DraftKings.
The financing for the takeover offer includes $2 billion to $3 billion in equity and $4 billion to $5 billion in new borrowing against the assets, Bloomberg reported.
Fertitta plans to combine his Landry’s restaurants and Golden Nugget Hotel and Casinos properties with Caesars, creating an even larger casino giant, the report added.
Caesars, Landry’s and Golden Nugget did not immediately respond to Reuters’ requests for comment.
Fertitta Entertainment, which also owns the basketball team Houston Rockets, had approached Caesars in 2018 about merging it with its own gaming empire, Reuters had reported.
The company owns more than 600 properties in over 15 countries, including casual dining brands such as Rainforest Café and Bubba Gump Shrimp.
Meanwhile, Caesars controls more than 50 casinos across North America, including Caesars Palace, Harrah’s and Eldorado. It also runs a retail and online sports betting app.
(Reporting by Anshuman Tripathy and Nandan Mandayam in Bengaluru; Editing by Shilpi Majumdar and Vijay Kishore)
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