Century Casinos is divesting its quartet of Canadian gaming establishments to Vici Properties. The transaction, unveiled recently, is projected to conclude in the latter half of this year. Rest assured, patrons will retain access to these casinos as Century Casinos will persist in their operational management.
Vici Properties is acquiring the physical assets for a substantial CAD $221.7 million (equivalent to approximately US $164.4 million). This encompasses the Century Casino & Hotel in Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino in Calgary.
This divestiture follows closely on the heels of Century Casinos’ acquisition of the operational aspects of The Nugget Casino Resort in Sparks, Nevada, just the preceding month. It appears they are engaging in significant strategic maneuvers!
Erwin Haitzmann and Peter Hoetzinger, the joint CEOs of Century Casinos, have expressed enthusiasm regarding this agreement, stating that it solidifies their collaboration with VICI and enhances their financial adaptability. They intend to allocate the proceeds from the sale towards improvements at The Nugget and for general corporate objectives.
Upon finalizing the agreement, Vici will expand its primary lease contract with its branch to encompass the Canadian Century properties. This action will elevate the rental income by C$17.3 million and span an initial period of 15 years.
The firm is contemplating utilizing a portion of the augmented cash flow to reduce outstanding liabilities and potentially distribute capital back to investors via share repurchases or a one-time dividend payment. The optimal approach for this allocation will be determined progressively.
