(RTTNews) - Fertitta Entertainment, Inc., the hospitality, gaming, and entertainment major owned by billionaire Tilman Fertitta, Thursday announced that it has agreed to buy Caesars Entertainment, Inc. (CZR), the casino entertainment company for approximately $17.6 billion in an all-cash deal.
Fertitta Entertainment will also absorb Caesars' outstanding debt of nearly $11.9 billion.
As per the agreement, Caesars' shareholders will receive $31 in cash for each outstanding Caesars' share representing a premium of 49 percent of Caesars' unaffected share price as of February 25.
With this acquisition, Fertitta hopes to create a combined company that brings together two iconic and highly complementary platforms, delivering guests an unmatched suite of gaming, entertainment, and restaurant brands under one roof. The transaction will be financed through a combination of equity contributed by Fertitta Entertainment, assumed Caesars' debt, and new committed debt financing arranged by a group consisting of 10 banks.
In pre-market activity, CZR shares were trading at $29.35, up 1.98% on the Nasdaq.
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