Chile's Enjoy to buy Caesars Entertainment's Uruguay unit

SANTIAGO Mon Nov 12, 2012 8:25am EST

SANTIAGO Nov 12 (Reuters) - Casino operator Caesars Entertainment Corp has agreed to sell a controlling operating stake in Uruguay's hotel and casino Conrad to Chile's Enjoy for around $140 million.

Enjoy, which runs hotels and casinos in Chile and Argentina, said on Monday it will buy a 45 percent stake in Caesars Entertainment's Baluma unit and will pay for the acquisition with a planned capital increase.

Enjoy's shareholders approved a capital increase of 75.0 billion Chilean pesos, or $157 million.

Caesars Entertainment has also agreed to buy a 10 percent stake in Enjoy via the subscription of shares offered in the planned capital increase.

"Enjoy expects this transaction to generate a positive impact on its financial situation due to improvements in the financial structure (and) the incorporation of a company with solid cash flow creation," the Chilean company said in a statement posted on the local regulator's website.

The Baluma unit, which operates in Brazil, Argentina and Uruguay, generated revenue of $157 million in 2011.

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