LAS VEGAS (AP) -- Casino giant Caesars Entertainment Corp. (NASDAQ:CZR) said Monday it has agreed to sell part of its Uruguay division to a Chilean casino company for $139.5 million in cash and stock.
Under the terms of the agreement, Chile's Enjoy SA will acquire 45% of Caesar's Baluma subsidiary, which owns and operates the Conrad Punta Del Este Resort and Casino in Punta Del Este, Uruguay. Caesars will become a shareholder in Enjoy, with a 10% stake.
The agreement also calls for Caesars and Enjoy to cooperate on marketing and player development.
Caesars Entertainment CEO Gary Loveman said the deal increases the company's distribution in Latin America and boosts company value by retaining an ownership interest in one of the region's leading casino operators.
"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," he said.
Enjoy said it will have the option to acquire the remaining stake in Baluma between years three and five of the relationship. Caesars will have the right to nominate one member to the Enjoy board.
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