New York-listed casino operator Caesars Entertainment Corporation has agreed to sell its majority-owned South African venue Emerald Resort & Casino for total proceeds of $49m.
Caesars will sell its 70 per cent stake in Emerald Resort to Johannesburg-based gaming and hospitality giant Peermont Hotels, Casinos and Resorts.
Cash proceeds to be received by Caesars will total $39m, with the deal implying a 7.9x multiple on 2018 EBITDA of $6.2m.
"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," said newly appointed Caesars Entertainment CEO Tony Rodio. "We're pleased to monetize this non-core asset in our portfolio, which will enable Caesars to sharpen its focus on other strategic markets."
Caesars Entertainment will continue to operate the property until the transaction closes, which is expected to be in the third quarter of 2019, subject to regulatory approvals and other customary closing conditions.
Peermont said that Emerald Resort presented great opportunities for growth and development, with the casino set to be able to offer a wider range of rewards through Peermont’s Winners Circle loyalty programme.
“Peermont successfully operates 11 multi-faceted casino resorts across southern Africa, and we confidently see Emerald Resort seamlessly fitting into our core business areas,” said Peermont CEO Nigel Atherton.
Shares in Caesars Entertainment Corporation (NSQ:CZR) closed up 0.76 per cent at $9.25 per share in New York Thursday.