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Carl Icahn sells Tropicana casinos in $1.85 billion deal

Reuters 

By Ajmera

(Reuters) - Billionaire investor is cashing out of casino business Entertainment in a $1.85 billion deal that will see picking up Tropicana's casino operations including its crown jewel in

Under the deal announced on Monday, six of the eight casino properties run by will be sold by to real estate investment trust for $1.21 billion.

The casino operations will be taken over by Eldorado, which will pay the remaining $640 million and lease the properties from GLPI for an initial 15-year period.

Eldorado's shares jumped as much as 21 percent to an all-time high of $43.15, while those of were up 4.7 percent at $34.85.

"(Entertainment's) assets are in very good shape. Atlantic City, and - all stand out as top notch assets," Union said.

The deal is the latest in a series of mergers and acquisitions in the U.S. gambling sector in recent years as companies expand their reach, diversify their businesses and take advantage of recent legalization of gaming in some states.

"We did not foresee any need for near-term capital investments of any scale across the properties," Eldorado said.

The addition of Tropicana's "high quality" assets will allow Eldorado to save about $40 million in the first year following the close of the deal later in 2018.

This is Icahn's second major sale in as many weeks. Last week, he agreed to sell parts maker Federal-Mogul to in a $5.4 billion deal, unloading an investment he has held for nearly two decades.

Icahn Enterprises said in its statement that the deal did not include Tropicana's casino and resort in the Caribbean, which would be sold separately as a condition of closing the deal.

Reno-based Eldorado owns and operates twenty properties in 10 U.S. states, including Colorado, Florida, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio, and

The company, which bought in a $1.7 billion deal in 2017, on Monday also agreed to acquire in Elgin, for $327.5 million in cash.

(Reporting by in Bengaluru; Editing by and Saumyadeb Chakrabarty)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Mon, April 16 2018. 21:26 IST
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