X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONDON-The Harrah’s takeover of London Clubs International moved a step closer to finalizing after the Las Vegas casino operator reached a deal with Genting, LCI’s principal shareholder.

Harrah’s raised its original 125p-a-share offer to 135p a share, and in return Genting, which holds a 29.6% stake in LCI, has agreed to accept the bid. The improved offer represents an 8% increase on Harrah’s original euro 417-million ($524-million) offer, a 36.6% premium on LCI’s share price of 98.8p prior to the original offer. Its acquisition of Genting’s stake takes acceptances for the Harrah’s takeover to 34.4%. Other shareholders in both companies were waiting to see what Genting would do before committing themselves.

The deal between is now expected to be followed by other shareholders falling into line behind the deal. The revised offer will become unconditional when acceptances have reached 75%, as opposed to the 90% threshold in the terms of the original offer.

LCI operates seven casinos in the UK and has four under development. It also operates two in Egypt, one in South Africa and has a relationship with a casino in Lebanon.

Harrah’s bid for LCI blocked plans by Genting to merge LCI and Stanley Leisure, the two UK casino operators in which it held significant stakes. LCI chairman Michael Beckett says the agreement “removes the principal uncertainty for other LCI shareholders. There is a great fit between these two businesses, and the logic for the deal is compelling for all LCI shareholders.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE 2020Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.