Caesars Entertainment, Inc. Announces Agreement to Sell William Hill Non-US Assets to 888 Holdings Plc for £2.2bn

Rhea-AI Summary

Caesars Entertainment (NASDAQ: CZR) has reached an agreement to sell the non-US assets of William Hill to 888 Holdings Plc for approximately £2.2 billion. Following debt repayment and adjustments, Caesars anticipates net proceeds of around £835 million (approximately $1.2 billion). The deal is contingent on 888 Holdings Plc shareholder and regulatory approvals, with closure expected in Q1 2022. CEO Tom Reeg expressed gratitude to William Hill's team and confidence in the new ownership aligning with their long-term goals.

Positive

• Net proceeds from the sale expected to be approximately $1.2 billion, enhancing liquidity.
• Transaction aligns with Caesars' strategy of divesting non-core assets.

Negative

• Transaction depends on shareholder and regulatory approvals, introducing uncertainty.
• Potential impact on market perception due to reliance on external approvals.

LAS VEGAS and RENO, Nev., Sept. 9, 2021 /PRNewswire/ -- Caesars Entertainment, Inc. (NASDAQ: CZR) ("Caesars") today announced an agreement to sell the non-US assets of William Hill to 888 Holdings Plc for approximately £2.2 billion. After the repayment of debt and other working capital adjustments, Caesars expects to receive net proceeds from the transaction of approximately £835mm or $1.2 billion. The transaction is subject to receipt of the approval of shareholders of 888 Holdings Plc and regulatory approvals. Caesars' expectation is that the transaction should close during the first quarter of 2022.

"I'd like to personally thank Ulrik and all of the team at William Hill for their professionalism and dedication while they have been part of Caesars and particularly during the sale process.  I am delighted that, as we said we would when we announced the offer for William Hill PLC, we have found an owner for the William Hill business outside the US which shares the same objectives, approaches and longer-term ambitions of that business," said Tom Reeg, CEO of Caesars Entertainment, Inc.

Deutsche Bank and Linklaters LLP represented Caesars on the transaction.

About Caesars Entertainment, Inc.
Caesars Entertainment, Inc. (NASDAQ: CZR) is the largest casino-entertainment company in the US and one of the world's most diversified casino-entertainment providers. Since its beginning in Reno, NV, in 1937, Caesars Entertainment, Inc. has grown through development of new resorts, expansions and acquisitions. Caesars Entertainment, Inc.'s resorts operate primarily under the Caesars®, Harrah's®, Horseshoe®, and Eldorado® brand names. Caesars Entertainment, Inc. offers diversified gaming, entertainment and hospitality amenities, one-of-a-kind destinations, and a full suite of mobile and online gaming and sports betting experiences. All tied to its industry-leading Caesars Rewards loyalty program, the company focuses on building value with its guests through a unique combination of impeccable service, operational excellence and technology leadership. Caesars is committed to its employees, suppliers, communities and the environment through its PEOPLE PLANET PLAY framework. Know When To Stop Before You Start.® Gambling Problem? Call 1-800-522-4700. For more information, please visit. www.caesars.com/corporate.

Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words "anticipates," "assumes," "believes," "estimates," "expects," "guidance," "intends," "plans," "projects," and similar expressions that do not relate to historical matters. Forward-looking statements include  all statements other than statements of historical fact, including statements regarding required regulatory approvals and expected timing of consummation of the proposed transaction. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond Caesars' control and could materially affect actual results, performance, or achievements. Although Caesars believes that in making such forward-looking statements its expectations are based upon reasonable assumptions, there is no assurance that the proposed transaction will be consummated, and such forward-looking statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected.  Caesars cannot assure you that the assumptions upon which these statements are based will prove to have been correct. Risks and uncertainties regarding the forward-looking statements contained herein include, but are not limited to, the possibility that the proposed sale of the non-US assets of William Hill to 888 Holdings Plc does not close when expected or at all because required regulatory or other approvals are not received or other conditions are not satisfied on a timely basis or at all and other risk factors that are detailed from time to time in Caesars' filings with the Securities and Exchange Commission. Caesars does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required by applicable law.

Source: Caesars Entertainment, Inc.

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SOURCE Caesars Entertainment, Inc.

FAQ

What is the deal between Caesars Entertainment and 888 Holdings for William Hill?

Caesars Entertainment has agreed to sell the non-US assets of William Hill to 888 Holdings Plc for approximately £2.2 billion.

When is the expected closing date for the Caesars and 888 Holdings transaction?

The transaction is expected to close during the first quarter of 2022.

How much net proceeds does Caesars expect from the William Hill sale?

Caesars expects to receive approximately £835 million or $1.2 billion in net proceeds from the sale.

What regulatory approvals are needed for the Caesars-888 Holdings deal?

The transaction requires shareholder approval from 888 Holdings Plc and various regulatory approvals.

What are the implications of the transaction for Caesars Entertainment shareholders?

The sale is expected to enhance liquidity, but it also carries risks related to the approval process.