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Houston Rockets owner\u00a0Tilman Fertitta is in the midst of a $17 billion takeover of Caesars Entertainment.<\/p>\n
Tim Warner\/Getty Images<\/p>\n
For Houston billionaire Tilman Fertitta, everything’s going according to plan with his bid to take Caesars Entertainment private in a $17.6 billion takeover<\/a>.\u00a0<\/p>\n Last week, Fertitta Entertainment’s Caesars takeover\u00a0reached a major milestone as the firm’s two senior executives\u2014Chief Financial Officer Richard Liem and General Counsel Steven Scheinthal\u2014were unanimously approved by the Nevada Gaming Control Board. The duo joins Paige\u00a0Farwell Fertitta, Tilman’s ex-wife and President of Fertitta Entertainment, as state-approved executives on the company’s\u00a0three-member board.<\/p>\n Article continues below this ad<\/p>\n Tilman Fertitta resigned as the company’s president and director last year after being confirmed as the US ambassador to Italy and San Marino, leaving business operations mostly to Liem and Schiental. According to the Las Vegas Review-Journal<\/a>, Paige Farwell Fertitta,\u00a0who has a cordial relationship with her ex-husband, told regulators she won\u2019t be handling any day-to-day oversight of the Las Vegas operations.<\/p>\n Liem and Scheinthal will\u00a0now advance for final consideration from the Nevada Gaming Commission on July 23.<\/p>\n Fertitta has proposed an all-cash deal to acquire Caesars for approximately $5.7 billion. Additionally, he plans to take on around $11.9 billion of Caesars’ existing debt, which brings the total value of the transaction to $17.6 billion.\u00a0<\/p>\n This acquisition would merge the two companies’ renowned portfolios, which include nearly 60 domestic casino resorts and gaming facilities, online and retail sports betting platforms, and over 550 Fertitta Entertainment locations, including about 450 Landry’s full-service restaurants.\u00a0<\/p>\n Article continues below this ad<\/p>\n Fertitta’s deal\u00a0still has several hurdles to overcome, including obtaining antitrust clearance from the Federal Trade Commission (FTC). The company submitted its Hart-Scott-Rodino application\u2014a required pre-merger notification meant to inform antitrust regulators about the planned merger or acquisition and allow them to assess any potential anti-competitive effects\u2014to the FTC and the Department of Justice on July 13, according to Scheinthal.\u00a0<\/p>\n Fertitta must also gain approval from Caesars’ shareholders, as well as approval in each jurisdiction where Caesars has a gaming operation, which could take up to 10 months, according to Scheinthal. Per the terms of Fertitta’s takeover bid, Caesars shareholders will receive approximately $31 per share in cash, a 49% premium over the stock\u2019s price before the deal was announced.\u00a0<\/p>\n Houston billionaire Tilman Fertitta has big things planned for Caesars Entertainment once the deal is finalized.\u00a0<\/p>\n Tim Warner\/Getty Images<\/p>\n Caesars’ shareholders may consider pursuing a different path, though, particularly in light of a competing bid from activist billionaire Carl\u00a0Icahn, who expressed interest in acquiring Caesars back in March. According to a Tuesday Bloomberg report<\/a>, Jefferies Financial Group Inc. is exploring investor interest in raising approximately $5 billion in debt to support Icahn’s potential rival bid. According to 9fin, Icahn plans to pay between $35 and $40 per share<\/a> for the casino operator, surpassing Fertitta\u2019s offer of $31 per share, also with the goal of taking Caesars private.<\/p>\n Article continues below this ad<\/p>\n However, there is doubt that Icahn’s offer will actually be more favorable.\u00a0<\/p>\n \u201cWill [Icahn] get to a finish line here that\u2019s acceptable to the board of directors? From what I\u2019m hearing, it\u2019s a tough slog,\u201d CNBC’s David Faber said to\u00a0iGaming<\/a>. \u201cThey\u00a0favour the Tilman deal. There is firm financing there. The debt package kind of travels with the management team, meaning if the management team were to leave, you would have to refinance a lot more debt.\u201d<\/p>\n The Houston billionaire oversees approximately 600 properties worldwide through his company, Landry\u2019s Inc., which includes 60 dining brands. His Las Vegas portfolio features notable establishments such as Morton\u2019s The Steakhouse, Mastro\u2019s Ocean Club, and the Golden Nugget Las Vegas Hotel and Casino. Additionally, he owns the NBA’s Houston Rockets and the WNBA’s Connecticut Sun, which is set to relocate and rebrand as the Houston Comets in 2027.<\/p>\n Article continues below this ad<\/p>\n<\/p>\n
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