Ceasars soars 13% on internet-based gambling spinoff
The largest owner of U.S. casinos, Caesars Entertainment Corp., increased its value by 13% after implementing its plans to provide stocks worth around US$1.18 billion in in its growing online gambling venture, Caesars Growth Partners. Caesars Growth Partners was formed by Caesars Entertainment and Caesars Acquisition in a venture for mainly online gambling.
Caesars Entertainment rise of 13% to $15.94 at the close in New York signifies the company's largest advance since April of this year. Caesars Entertainment has already doubled this year.
The Las Vegas-based company is going to distribute rights to its stockholders allowing them to purchase as many as 125 million or more shares of Caesars Acquisition Co. at around $9.43 per share, according to official documents filed today.
TPG Global LLC and Apollo Global Management LLC, which collectively has 70% stake in Caesars Entertainment, is prepared to exercise around US$500 million of their rights, according to the document.
Ceasars Growth Partners' businesses include Interactive Entertainment, which operate the company's regulated online gambling. Three states, including gambling centers Nevada and New Jersey, are the first to legalize Web-based casino games. Interactive Entertainment would run the World Series of Poker and offer mobile and social games.