Caesars Entertainment is seen turning focus on Strip casino sale
$5,000 Welcome Bonus
CBRE Equity Research weighed in on the decision by Caesars Entertainment (NASDAQ:CZR) to reduce the purchase price of its William Hill non-US assets for 888 Holdings Plc by ~$340M to $2.6B. The casino operator now expects to receive $785M of net proceeds.
Analyst John DeCree "We believe CZR made the right call in working with 888 to get this deal over the finish line. While more proceeds are always better, the probability of closing and timeliness is paramount, particularly given the turbulent market conditions, complexity of UK takeover laws, and the importance of deleveraging."
DeCree and team think the focus for CZR will now shift to the prospect of a Las Vegas Strip casino sale. While similar concerns have surfaced, transaction conditions are seen as more favorable than indicated by the 888-WMH. transaction. Potential financial buyers like REITs are said to still have favorable access to capital and motivation to grow. A CZR strip asset sale is seen attracting a deal price north of $2B.
