Casino giant Caesars Entertainment has agreed to sell part of its Uruguay division to a Chilean casino company for US9.5 million in cash and stock.
Under the terms of the agreement, Enjoy SA will acquire 45 percent of Caesars’ Baluma subsidiary, which owns and operates the Conrad Punta Del Este Resort and Casino in Punta Del Este, Uruguay. Enjoy will assume primary responsibility for management of the property.
Enjoy said it will have the option to acquire the remaining stake in Baluma between years three and five of the relationship, while Caesars will become a shareholder in Enjoy, with a 10 percent stake, and will have the right to nominate one member to the Enjoy board.
The agreement also calls for Caesars and Enjoy to cooperate on marketing and player development.
The resort, which draws customers primarily from Brazil, Argentina and Uruguay, generated approximately $157 million in net revenue last year from 542 slot machines, 75 table games and 294 hotel rooms.