Dec 22 (Reuters) - Casino and entertainment company Caesars Entertainment Corp plans to buy affiliate Caesars Acquisition Co in an all-stock deal, the Wall Street Journal reported, citing people familiar with the matter.
The deal is expected to be announced as soon as Monday and would better position Caesars Entertainment to restructure the $18.4 billion debt load of its largest unit - Caesars Entertainment Operating Co (CEOC), the newspaper said. (on.wsj.com/1x1LqIC)
Based on Friday’s closing share price, Caesars Acquisition is valued at $1.29 billion.
Representatives at Caesars Entertainment and Caesars Acquisition could not immediately be reached for comment outside regular U.S. business hours.
On Friday, CEOC said it would file for Chapter 11 bankruptcy protection by mid-January to cut its mounting debt.
Caesars Entertainment Corp, the world’s largest gaming company, has been negotiating with creditors over its efforts to restructure operations as it struggles with debt.
The merger with Caesars Acquisition would leave Caesars Entertainment with the cash it needs to complete that restructuring and also increase its appeal as a guarantor of lease payments made to the REIT, the Journal said. (Reporting by Shivam Srivastava in Bangalore; Editing by Gopakumar Warrier)