Leading Jhb company acquires giant Vaal resort from US-based Caesars Entertainment
10:52 Thu, 16 May 2019
Leading Jhb company acquires giant Vaal resort from US-based Caesars Entertainment | News Article
One of South Africa’s leading gaming and hospitality groups, Peermont Hotels, Casinos and Resorts, announced that they concluded a purchase agreement with Nevada-based Caesars Entertainment Corporation to acquire the Emerald Resort & Casino.

This is according to the Peermont group’s public relations representative, Nileen Gale, who said the announcement was made yesterday in Johannesburg. Gale added that the Emerald resort, which is on the banks of the Vaal River in Vanderbijlpark, Gauteng, aligns perfectly with Peermont’s main objective of creating premium leisure and gaming experiences for its customers. 

The Gauteng-based company’s CEO, Nigel Atherton, said the company looks forward to seeing the Vaal-based resort fitting seamlessly into its core business, along with the 11 other multi-faceted casino resorts it operates across Southern Africa, including in South Africa, Botswana and Malawi.

Atherton told OFM News that this acquisition will not only provide the group with opportunities for growth and development but through it, the Emerald Resort will now be able to also offer its customers a wider range of rewards with Peermont’s Winners Circle Loyalty Programme. 

Emerald Resort first opened its doors in 1997 and features a hotel with 77 rooms, and a casino that boasts 430 slot machines and 22 table games. The resort’s entertainment and leisure offerings include the Aquadome Water Park, an exciting Game Park, a relaxing spa and a variety of restaurants.

Caesars Entertainment will continue to operate the property until the transaction is complete, which is subject to regulatory approvals and other customary closing conditions. This is expected to be completed in the third quarter of 2019. The Nevada-based company also announced on its website that it will sell the resort for total proceeds of $49 million, which implies 7.9 times its 2018 EBITDA of $6.2 million. Caesars owns 70% of this property while the remaining 30% is owned by local minority partners. Total cash proceeds to Caesars for its 70% ownership and other adjustments total $39 million.

"While Emerald Resort & Casino is a unique property, it receives limited benefits from the Caesars' Rewards network effect, given its remoteness to other properties in our network," said Tony Rodio, CEO of Caesars Entertainment. "We're pleased to monetise this non-core asset in our portfolio, which will enable Caesars to sharpen its focus on other strategic markets," Rodio concluded.

OFM News

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