Investors will receive $31 per share, a 49% premium, as Fertitta takes on $12 billion in Caesars debt.
Fertitta Entertainment agreed to acquire Caesars Entertainment for approximately $17.6 billion, including $5.7 billion in cash and $12 billion in assumed debt. The deal values Caesars at $6 billion, with shareholders set to receive $31 per share in cash.
The offer represents a 49% premium over Caesars’ share price before merger speculation began in February. Shares have risen 15% since rumors emerged, with a further 2% gain in pre-market trading Thursday. Caesars may solicit competing bids until July 11.
Caesars, founded in the 1930s and iconic for its Las Vegas Strip presence, operates Caesar’s Palace and other gaming properties. Fertitta owns the Golden Nugget and restaurant chains like Rainforest Cafe and Morton’s.