Caesars Entertainment Corporation CZR and Caesars Acquisition Company CACQ announced Monday that they will merge in an all-stock transaction.
Shares of both companies soared in pre-market trading amid the news, with Caesars Acquisition Company up over 10 percent and Caesars Entertainment up over 26 percent.
According to the joint press release, “upon completion of the merger and the proposed restructuring of Caesars Entertainment Operating Company, Inc. (CEOC), the merged company will be well capitalized and positioned for sustainable long-term growth and value creation.”
The merger will also support the proposed restructuring of CEOC, a subsidiary of Caesars Entertainment, announced on Friday, to reduce debt and lower interest payments.
"The merger of Caesars Entertainment and Caesars Acquisition solidifies our focus on owning assets in destination and high-growth markets and businesses, while maintaining the benefits of operating our network and the Total Rewards loyalty program," said Gary Loveman, Chairman and Chief Executive Officer of Caesars Entertainment.
"Upon completion of the merger and restructuring, Caesars Entertainment Corp. entities will be financially strong, with significantly reduced leverage and a much simpler and straightforward corporate structure."
Caesars Entertainment Corporation traded at $17.00 in the pre-market, up 26.02 percent.
Caesars Acquisition Company traded at $10.50 in the pre-market, up 10.99 percent.
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