Nevada headquartered Caesars Entertainment has announced a trimming of its African interests, after offloading its stake in the Emerald Resort and Casino.
Acquiring the property is Peermont Hotels, Casinos and Resorts, a Johannesburg based hospitality and entertainment firm, for a total cash consideration of $49m.
Implying a 7.9 multiplier on 2018’s $6.2m EBITDA figure, Caesars, which owns 70 per cent of the property with the remaining 30 per cent help by local minority partners, receives cash proceeds for its ownership stake and other adjustments total $39m.
The company is to continue to operate the property until the transaction closes, which is expected to be in the third quarter of 2019, subject to regulatory approvals and other customary closing conditions.
Tony Rodio, CEO of Caesars Entertainment, explained: “While Emerald Resort and Casino is a unique property, it receives limited benefit from the Caesars’ Rewards network effect given its remoteness to other properties in our network.
“We’re pleased to monetise this non-core asset in our portfolio, which will enable Caesars to sharpen its focus on other strategic markets.”
This comes at the same time as Caesars was named in Corporate Responsibility Magazine’s ‘100 Best Corporate Citizens’ list for 2019, after being particularly commended in its environmental categories.
Ranking at number 15 in environment and four on climate change, two pillars that make up more than one-third of the evaluation criteria, Caesars ranking 72 overall, after being selected based on its standout environmental, social and governance performance among public companies in the United States.
Jan Jones Blackhurst, executive vice president of public policy and corporate responsibility at Caesars Entertainment, commented: “Caesars Entertainment is committed to leading the way as we build a responsible business culture, staked in supporting the well-being of people and our communities and acting as steadfast stewards of the environment.
“Through our People Planet Play corporate responsibility framework, we dedicate attention and resources to each of our mission areas, to create the industry-leading impact that has earned us the prestigious distinction as one of CR Magazine’s top corporate citizens.”