Century Casinos recently completed a significant transaction in Canada, divesting their entire portfolio of four casinos to Vici Properties. The agreement, valued at approximately $164 million, grants Vici ownership of the Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, and the Century Downs Racetrack and Casino located in Calgary.
This sale follows closely on the heels of Century Casinos’ acquisition of the Nugget Casino Resort in Nevada last month. The company’s CEOs, Erwin Haitzmann and Peter Hoetzinger, perceive this as a mutually beneficial arrangement. They receive a substantial cash infusion to enhance the Nugget and explore other prospects while maintaining the Canadian casinos’ operations without interruption. It appears Century Casinos is strategically repositioning itself for promising new endeavors!
Upon finalizing the agreement, Vici will integrate Century Canada’s assets into its primary lease contract with Great Canadian. This action will prolong the lease duration to a complete 15 years and elevate the rental payments by roughly CA$17.3 million.
Vici’s executives indicated they are investigating utilizing a portion of the earnings to reduce outstanding obligations and perhaps distribute capital back to investors via share repurchases or unique dividends. They stressed that they will meticulously assess the optimal allocation of the funds.
