It appears that the Texas Pacific Group is flushed with cash paying US$90 a share with Apollo Management for Harrahs Entertainment the worlds largest casino group. Looks like that when the A380 finally does enter service with QF that it will be a flying casino...........well craps to that!!!........though I bet some crew on their time off will be gambling away their allowances!!!
Does this mean that our new owners will be wearing suits with black shirts and white ties?
Harrah's Agrees to Be Acquired by Apollo and TPG
Stockholders to Receive $90.00 Per Share in Cash; Transaction Valued at Approximately $27.8 Billion
LAS VEGAS--(BUSINESS WIRE)--Dec. 19, 2006--Harrah's Entertainment, Inc. (NYSE: HET) today announced it has entered into a definitive agreement for affiliates of Texas Pacific Group (TPG) and Apollo Management, L.P. to acquire Harrah's in an all-cash transaction valued at approximately $27.8 billion, including the assumption of approximately $10.7 billion of debt.
Under the terms of the agreement, Harrah's stockholders will receive $90.00 in cash for each outstanding Harrah's share. This represents a premium of approximately 36% over Harrah's closing share price on September 29, 2006, the last trading day before disclosure of the initial offer made by Apollo and TPG to acquire Harrah's for $81.00 per share.
The Harrah's Board of Directors, based on the recommendation of a Special Committee of non-management directors which conducted a thorough review of Harrah's strategic alternatives, has approved the agreement and has recommended that Harrah's stockholders vote in favor of the agreement.
"In Apollo and TPG, we will have owners who share our vision for Harrah's, are fully supportive of our current strategy and are committed to helping us execute on it. This will be a change in ownership, not a change in direction," said Gary Loveman, Harrah's chairman, chief executive officer and president. "Harrah's management team and its 85,000 talented employees look forward to working with Apollo and TPG as the Company moves into the next phase of its growth and development."
"After careful consideration of the full range of strategic alternatives, the Special Committee and the full Board concluded this transaction is in the best interest of Harrah's stockholders," said Robert Miller, co-chairman of the Special Committee. "Apollo and TPG are both leading private equity firms with proven track records and strong reputations."
David Bonderman, TPG founding partner, said, "We are delighted to be joining with the excellent management team at Harrah's and our private equity partners to continue to build on the Company's strong foundation. Taking a long-term perspective, we believe we will be able to help Harrah's deliver on its growth strategy."