Caesars Signs Agreement to Sell Its Interests in South African Casino Resort
LAS VEGAS -- Dec. 24, 2004 -- Caesars Entertainment Inc. (NYSE: CZR), one of the world’s leading gaming companies, today announced that it has signed a definitive agreement to sell its ownership and management interests in Caesars Gauteng, a casino resort near Johannesburg, South Africa, for approximately $145 million.
Under the terms of the agreement, Peermont Global Limited, a South African luxury hotel and casino company, and its economic empowerment partner, Marang (East Rand) Gaming Investments, jointly will acquire the 25 percent interest held by Caesars’ South African affiliate in the company that owns Caesars Gauteng. Peermont also will acquire Caesars’ 50 percent interest in the company that manages the South African casino resort.
Caesars Entertainment expects to record a pre-tax gain of approximately $90 million on the transaction, subject to final currency translation adjustments. The transaction is scheduled to close in the second quarter of 2005, subject to regulatory approval.
“We are proud of the relationship we have built with our partners in South Africa, especially Marang,” said Caesars President and Chief Executive Officer Wallace R. Barr. "We are equally proud of the best-in-class experience that we have created together for our customers at Caesars Gauteng.
“We are confident that Peermont Global, which has been our development and operating partner since the beginning, will continue the strong tradition of customer service and corporate responsibility that the joint venture has established,” Barr added.
Situated near the Johannesburg International Airport, Caesars Gauteng combines the classical elegance of Monte Carlo with the excitement of Caesars Palace in Las Vegas. The casino resort features 276 luxurious guest rooms and suites, a magnificent casino with 1,640 slot machines and 67 table games, ten fine restaurants, an award-winning spa, a 1,000-seat showroom, an indoor roller coaster and theme park, a unique retail concourse and extensive conference facilities. The resort will be re-branded following the closing of the transaction.
About Caesars Entertainment
Caesars Entertainment, Inc. (NYSE: CZR) is one of the world’s leading gaming companies. With $4.5 billion in annual net revenue, 28 properties on four continents, 26,000 hotel rooms, two million square feet of casino space and 52,000 employees, the Caesars portfolio is among the strongest in the industry. Caesars casino resorts operate under the Caesars, Bally’s, Flamingo, Grand Casinos, Hilton and Paris brand names. The company has its corporate headquarters in Las Vegas.
In July 2004, the Board of Directors of Caesars Entertainment approved an offer from Harrah’s Entertainment to acquire the company for approximately $1.8 billion and 66.3 million shares of Harrah’s common stock. The offer must be approved by shareholders of both companies and federal and state regulators before the transaction can close.
Additional information on Caesars Entertainment can be accessed through the company’s web site at www.caesars.com .
NOTE: This press release contains “forward-looking statements” within the meaning of the federal securities law, which are intended to qualify for the safe harbor from liability provided thereunder. All statements which are not historical statements of fact are “forward-looking statements” for purposes of these provisions and are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Such forward-looking statements include statements regarding when the transaction is expected to close, the financial impact of this transaction on the company and future uses of the company’s capital and resources. Risk factors which could cause actual results to differ from expectations include the closing of the transaction and/or the timing thereof and matters related to the sales and transition processes. Additional information concerning potential risk factors that could affect the company’s future performance are described from time to time in the company’s reports filed with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K for the year ended December 31, 2003 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2004, June 30, 2004 and September 30, 2004. The reports may be viewed free of charge at the following website: www.sec.gov. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.
- Contact Information
- Robert W. Stewart
- Media Contact
- Caesars Entertainment Inc.
- Contact via E-mail
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.