Battling with its current financial position, Caesars Entertainment has announced to sell its South Africa casino to hospitality giant Peermont Hotels. According to the deal, Caesars will sell its 70 percent stake in Emerald resort. Caesars will receive total cash proceeds of $39 million.
Caesars newly appointed CEO Tony Rodio said, “While Emerald Resort & 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 monetize this non-core asset in our portfolio, which will enable Caesars to sharpen its focus on other strategic markets.”
While the deal has been finalized, Caesars will continue to operate the venue until the final transactions. It is expected that the transfer and transactions will be done by October this year. However, it is also a subject to local rules and regulations.
“Peermont successfully operates 11 multi-faceted casino resorts across southern Africa, and we confidently see Emerald Resort seamlessly fitting into our core business areas,” said Peermont CEO Nigel Atherton.
After the activist investor Carl Icahn increased his stakes in Caesars to become the single largest investor, a potential merger or sale of Caesars is being expected. Icahn has said on several occasions that a merger is the only way ahead for Caesars.
Also, recently, the owner of the Treasure Island casino resort said that he has over $1 billion in cash if Caesars wants to settle a deal for any of its Vegas Strip casinos.