Tilman Fertitta proposes Golden Nugget-Caesars deal

Tilman Fertitta proposes Golden Nugget-Caesars deal

Casino merger would provide white space for Landry’s, says report

Tilman Fertitta, owner of the Golden Nugget Casinos and the Landry’s Inc. restaurant-entertainment portfolio, has approached casino operator Caesars Entertainment Corp. about a merger of the two gaming companies, according to Reuters.

Fertitta, who also owns the National Basketball Association’s Houston Rockets, was not immediately available for comment, his Houston office said. But Reuters cited unnamed sources who said the billionaire investor was seeking a reverse merger in which Caesars would acquire Golden Nugget.

Sources told the Houston Chronicle that the proposed deal would make Fertitta chairman and CEO of Caesars, which operates 55 casino and hotel properties, including Caesars Palace, Harrah’s, Flamingo and Planet Hollywood Resort & Casino.

Caesars shareholders, including private-equity firms Apollo Global Management LLC and TPG Global, would remain shareholders in the combined company, the sources told Reuters.

At midday Thursday, Caesars Entertainment shares were trading up about 1 percent, to around $10.30, after increasing 12.2 percent on Thursday.

Caesars has explored other acquisitions since emerging from bankruptcy in October 2017.

One reported acquisition target was Detroit-based Jack Entertainment LLC, which founder Dan Gilbert, who created online mortgage lender Quick Loans Inc., was seeking to sell, according to Bloomberg.

Landry’s Inc. operates more than 500 dining locations under such brands as Bubba Gump Shrimp Co., Chart House, Claim Jumper, Grotto, Landry’s Seafood, Mastro’s Restaurants, McCormick & Schmick’s Seafood, Mitchell’s Fish Market, Morton’s The Steakhouse, The Oceanaire, Rainforest Café, Saltgrass Steak House, Vic & Anthony’s and Willie G’s. The company also owns the BR Guest Restaurants, acquired in 2016, including Dos Caminos, Strip House and Bill’s Bar & Burger.

The company’s gaming division includes Golden Nugget Hotel and Casinos in Las Vegas and Laughlin, Nev.; Atlantic City, N.J.; Biloxi, Miss.; and Lake Charles, La.

Contact Ron Ruggless at [email protected] 

Follow him on Twitter: @RonRuggless

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