Casino group Caesars agrees to $5.7bn takeover by Tilman Fertitta

(Sharecast News) - Shares in Caesars Entertainment rose on Thursday after the hotels and casinos operator agreed to be acquired by Tilman Fertitta's Fertitta Entertainment in a $17.6bn cash-and-debt deal that will take the company private.

Under the terms of the agreement, Caesars shareholders will receive $31.00 per share in cash, representing a 49% premium to the company's unaffected closing price before takeover talks became public in late-February.

The transaction includes the assumption of roughly $11.9bn in debt and values Caesars' equity at about $5.7bn.

Shares in Caesars rose 1.5% to $29.20 shortly after the opening bell on Wall Street, pushing the year-to-date gain to around 25%.

The companies said the combination would create a broader hospitality, gaming and loyalty platform by integrating Caesars' casino and digital betting operations with Fertitta Entertainment's portfolio of restaurants, hotels and Golden Nugget properties.

Caesars said the deal would provide greater financial flexibility and support long-term investment across its resorts, digital operations and customer rewards ecosystem.

Chief executive Tom Reeg said: "This transaction delivers compelling and certain value for our shareholders while positioning Caesars for continued growth and long-term success."

The agreement includes a "go-shop" period running until 11 July, allowing Caesars to solicit alternative proposals.

Fertitta, who already owns the Golden Nugget casino chain and the Houston Rockets basketball franchise, has previously pursued expansion in the US gaming sector through acquisitions and strategic investments.

The deal remains subject to shareholder approval and regulatory clearances.