Nov. 12, 2012
/PRNewswire/ -- Caesars Entertainment Corporation (NASDAQ: CZR) and Enjoy S.A. today announced that they have signed a definitive agreement to form a strategic relationship in
, one of the fastest growing casino gaming markets in the world. Under terms of the agreement, Enjoy will acquire 45% of Baluma S.A., the Caesars subsidiary which owns and operates the Conrad Punta Del Este Resort and Casino in Punta Del Este,
and Caesars will become a shareholder in Enjoy. Caesars and Enjoy will also cooperate on marketing and player development, increasing each company's distribution capacity and strengthening the value proposition to their customers through the ability to offer greater amenities to customers who consolidate their play with the two companies.
"Enjoy's strong regional expertise combined with Caesars' global network and operating proficiency will create a strong value proposition for customers of Punta Del Este and Enjoy's portfolio of properties," said
, Chairman, Chief Executive Officer and President of Caesars Entertainment. "The transaction delivers excellent value to our shareholders, including a retained interest in the future growth of Conrad and an ownership position in one of
's leading casino operators. This transaction increases Caesars' distribution in
and provides us greater exposure to this fast growing market."
"This acquisition will further solidify Enjoy's position as the pre-eminent distributor of casino entertainment in
, Enjoy's Chief Executive Officer. "With Conrad, we are adding
's premier gaming resort property to our portfolio. Further, the alliance with Caesars will reinforce our commercial strategies by offering new and diverse alternatives to our customers. This will surely benefit our company and our shareholders, and above all, our country and the domestic tourism industry."
Upon the closing of the transaction, Enjoy will assume primary responsibility for management of the Conrad. Enjoy and Caesars will enter into an agreement that will provide Conrad, Enjoy and Caesars customers with enhanced benefits and entertainment opportunities throughout
and Caesars world-wide portfolio of casino resorts.
Under the terms of the transaction, Enjoy will acquire 45% of Baluma S.A. for
in cash and stock. Following the transaction, Caesars will own 10% of Enjoy, which it will receive through the subscription of shares in a capital raising that Enjoy will conduct prior to closing. Enjoy will have the option to acquire the remaining stake in Baluma S.A, between years three and five of the relationship. Caesars will have the right to nominate one member to the Enjoy Board.
Since opening in
, the Conrad has been a significant contributor to the economic growth and development of
by attracting many international visitors and hosting large-scale international conventions. The resort draws customers primarily from
, and in 2011, generated approximately
in net revenue. The Conrad has 542 slot machines, 75 gaming tables and 294 rooms. The resort also employs more than 2,000 people during peak season, making it one of the largest private employers in Uruguay. In May, Caesars obtained an extension of the company's gaming license through 2036.
Deutsche Bank Securities Inc. served as financial advisor to Enjoy S.A. on this transaction.