Caesars Entertainment Corp. today agreed to acquire affiliate Caesars Acquisition Co. in a stock-for-stock merger that will better position the $18.4 billion debt load of its largest unit, the Wall Street Journal reported today. The acquisition also will consolidate the parent company’s stake in properties such as Planet Hollywood and Bally’s Las Vegas, online gambling operations and other assets it owns with Caesars Acquisition. Under the terms of the deal, Caesars Entertainment shareholders will own about 62 percent of the combined company, while Caesars Acquisition shareholders will own about 38 percent. The deal marks the latest effort by Caesars Entertainment and its private-equity backers, Apollo Global Management LLC and TPG Capital LLP, to shore up the company’s finances after the casino company’s 2008 leveraged buyout. Hamlet Holdings LLC, an entity controlled by Apollo and TPG, has a 66 percent stake in Caesars Acquisition.
