(Corrects name of TPG Capital in fourth paragraph.)
Caesars Entertainment Corp. (CZR:US), the largest owner of U.S. casinos, gained 13 percent after moving ahead with plans to offer about $1.18 billion in stock in its emerging online gambling business.
Caesars Entertainment rose 13 percent to $15.94 at the close in New York to mark the biggest advance since April 23. The Las Vegas-based company (CZR:US) has more than doubled this year.
Caesars Entertainment will distribute rights to its stockholders to buy as many as 125.4 million shares of Caesars Acquisition Co. at $9.43 each, according to a filing today. Caesars Entertainment and Caesars Acquisition are forming Caesars Growth Partners, a venture for online gambling as well as some casinos.
Apollo Global Management LLC (APO:US) and TPG Capital, which hold about 70 percent of Caesars Entertainment, plan to exercise at least $500 million of their rights, according to the filing.
Growth Partners’ businesses include Interactive Entertainment, which would offer social and mobile games, run the World Series of Poker and operate the company’s regulated online gambling. Three states, including Nevada and New Jersey, have legalized Web-based casino games.
The venture’s other business, Casino Properties and Development, is expected to include interests in the Planet Hollywood Resort & Casino in Las Vegas, a future project in Baltimore, and a share of management fees from those properties, according to the filing.
Caesars Entertainment said in April that it was creating the venture to finance growth investments and bolster the parent company’s balance sheet, which showed $21.1 billion of long-term debt (CZR:US) as of March 31.
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