A subsidiary of Harrah’s Entertainment has announced the terms of a cash offer to acquire all the outstanding ordinary shares of UK casino operator London Clubs International (LCI) for around £279m (US$530m, 413 euro).
The board of directors of LCI has unanimously recommended that its shareholders accept the offer of £1.25 per share (US$2.38, 1.85 euro).
If successful, Harrah’s expects the transaction to close in the fourth quarter of 2006.
LCI currently operates six casinos in the UK, with a further five under development, as well as two casinos in Egypt and one in South Africa.
“London Clubs has a strong collection of properties that are well positioned in the UK’s evolving regulatory framework. Under Harrah’s ownership, these international properties will even be stronger in the future,” said Gary Loveman, CEO and president of Harrah’s. “The multi-national operational experience of LCI’s management strengthens Harrah’s existing team, allowing for continued international expansion.” Details: www.lciclubs.com or www.harrahs.com
