The move would complete an acquisition that began with a 2012 agreement consummated in 2013 when Enjoy took on a 45 percent ownership position and took over operations of the prestigious casino resort.
G3NewsWire reports thatEnjoyhas announced to the Chile securities and insurance regulator (SVS) that it will adjust its debt limit upwards in order to raise the capital needed for the acquisition. Having sought agreement with their bond holders, Enjoy will now be able to raise as much as USD 500 million for the purchase.
In order to assume the first 45 % of the Conrad, Enjoy paid Caesars USD 139.5 million in cash and stock while Caesars became a 10 % shareholder in Enjoy S.A., in what was billed as a "strategic relationship”.
On November 12, 2012, Gary Loveman, former President and Chief Executive Officer and current Chairman of the Board of Caesars Entertainment said, "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,” according to a press release of that date.
The release further stated that Enjoy would have the option to acquire the remaining stake in Baluma S.A, between years three and five of the relationship while Caesars would have the right to nominate one member to the Enjoy Board. According to Bloomberg, Thomas Jenkin of Caesars currently sits on the Enjoy board.
Enjoy SA own and operates hotels and casinos inChileandArgentina, and is the leading casino concern in Chile operating casinos and five-star hotels in the cities of Antofagasta, Coquimbo,Viña del Mar, Rinconada, Santa Cruz, and Pucon as well as a casino in Mendoza, Argentina.
According to the G3 report, Enjoy is expanding in the region and inked a Memorandum of Understanding with the Decameron hotel chain for three casinos with the hotelier, the first of which began operations in February 2016 on the island of San Andrés, Colombia.
Source: GMB / Worldcasinodirectory.com
