Casinos are big business in Uruguay, and the cash flow in the country’s most lucrative casino proved to be irresistible for one of Chile’s largest gaming companies.
Santiago-based Enjoy will pay US$139.52 million to acquire a 45% ownership stake in the Conrad Punta del Este and assume control of the five-star casino currently run by Caesars Entertainment.
The agreement gives Enjoy a stock option to increase its ownership stake to 96% between years three and five. Those shares are held by the hotel’s owner, Baluma S.A., which also holds the casino’s gaming license through 2036.
Enjoy’s Javier Martinez explained the significance of the deal: “With the Conrad, we are adding the leading resort and casino in South America to our chain. In addition, the alliance with Caesars will allow us to offer new services to our clients.” The Caesars alliance will give Enjoy access to more than 40 million new avid gamblers, primarily from the United States.
The Conrad has 75 gaming tables, 542 slot machines, 294 guest rooms and 217,000 square feet of convention space. In 2011, the hotel reported revenue of US$156 million and total assets of US$244 million. (Full Story in Spanish)
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