Has the sale of Caesars properties begun?
The casino company is offloading properties in South Africa
There is no denying the fact that Caesars Entertainment will, at some point, be sold. This is the sole reason billionaire investor Carl Icahn took a majority position in the company and is his primary target for the casino company. Whether or not all of the properties would be offered as a single package, or separate facilities would be sold individually, hasn’t been made clear. However, Caesars has announced that it is giving up its interest in at least one property, which could indicate that it isn’t opposed to individual sales. That would be great news for Treasure Island.
Caesars is selling its South African resort, Emerald Resort & Casino, to Peermont Hotels, Casinos and Resorts. The Johannesburg-based company will pay $49 million for the venue, which reflects a 7.9x multiple on its EBITDA (earnings before interest, taxes, depreciation and amortization) from last year. That figure was $6.2 million. Caesars controls 70% of the property – the remaining 30% is owned by minority partners located in South Africa.
Caesars will continue to operate the property until the sale is completed, which is expected sometime during the third quarter of this year. It is still contingent upon normal closing and regulatory conditions.
Tony Rodio, Caesars CEO, explains, “While Emerald Resort & Casino is a unique property, it receives limited benefit from the Caesars’ Rewards network effect given its remoteness to other properties in our network. We’re pleased to monetize this non-core asset in our portfolio, which will enable Caesars to sharpen its focus on other strategic markets.”