However, since late March the share price of Eldorado has tumbled due to widespread closures of its casinos and hotels due to coronavirus. The share price of Eldorado has climbed more than 12-fold over the past five years, as shown in the graph below, achieving an enterprise value of $8bn (Financial Times, 2020). Its most recent acquisition was Tropicana Entertainment in 2018 for $640 million (Bussinesswire, 2018). The Nevada-based company was founded in 1973 with just one hotel-casino in Reno but has grown through its zealous acquisition strategy since 2005 (Caesars Entertainment, 2020). The merger, first mentioned in 2019 will create one of the largest companies in the US and the biggest casino operator spanning the globe. (Shaokun Chen, Claudia Horsham & Nikhil Sahdev)Īt a time when banks that have agreed to finance leveraged buyouts are starting to feel the pain from the lack of investors willing to purchase high risk corporate debt (Bloomberg, 2020), casino operator Eldorado Resorts has sealed the cash-and-stock $17.3 billion deal, to purchase Caesars Entertainment in July (Financial Times, 2020).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |