Spanish casino boss Manuel Lao Hernandez is reportedly considering different options for the future of gambling operator Cirsa Gaming Corp. SA, Bloomberg reported. Mr. Hernandez is the owner of the casino and bingo hall company.
According to unnamed sources, the Spanish businessman is exploring different opportunities for his companies, including initial public offering and even a minority stake sale. Sources believe that both options will draw interest among investors.
Other opportunities that are reportedly discussed by Mr. Hernandez involve the sale of the whole company or a merger with an interested business operation. It is believed that Cirsa could be sold for around €2 billion, in case a deal of this kind is agreed upon. The sources told Bloomberg that other gambling companies could be tempted by the opportunity to buy or merge with the major Spanish operator.
Cirsa was established back in the late 1970s and has since then expanded into an operator of bingo halls and casinos across Spain and other countries. The company currently owns over 134 land-based casinos, nearly 70 bingo halls, 2,000 betting shops, and more than 170 arcades in Spain, Italy, and across Latin America.
It was reported that Cirsa is currently discussing all available opportunities with financial consultant Lazard Ltd. According to sources, a final decision is yet to be made and it is is believed that Mr. Hernandez could actually decide that no transactions would take place in near future.
Merger and Acquisition Activity in the Global Land-Based Gambling Space
If Cirsa agrees on any form of consolidation, this could be yet another major deal of this kind within the global land-based gambling space. It was late last month when Nevada-based gaming company Golden Entertainment completed the purchase of American Casino & Entertainment properties for the total amount of $850 million. Thus, the former added the emblematic Stratosphere Casino, Hotel & Tower in Las Vegas, two Arizona Charlie’s properties in Las Vegas, and Aquarius Casino Resort in Laughlin to its portfolio of gambling venues.
Another acquisition deal was confirmed mere days ago when Caesars Entertainment Corp. announced that it would purchase private casino and horse racing operator Centaur Holdings for the amount of $1.7 billion. The transaction would allow Caesars to expand its presence across the state of Indiana.
Caesars’ main operating unit recently exited bankruptcy protection and the company said that it was ready to begin implementing its growth strategy that includes merger and acquisition deals as well as geographical expansion. The major casino operator is also looking to expand internationally, with Japan, Canada, and Brazil being some of the countries it has expressed interest in.
As mentioned above, Cirsa is believed to hold the potential to attract major investors from the gambling space and to snatch over €2 billion from a potential sale of its business.
