Century Gaming is divesting its quartet of Canadian gaming establishments to Vici Properties, a real estate investment trust, for approximately $1.64 billion. The transaction is anticipated to reach completion in the latter part of this year.
The assets encompassed in the divestiture are Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, all situated in Alberta, and Century Downs Racetrack and Casino in Calgary. These holdings constitute the entirety of Century Gaming’s Canadian portfolio.
This agreement follows closely on the heels of Century Casino’s purchase of The Nugget Casino Resort in Sparks, Nevada, which occurred in the preceding month.
Century Gaming’s co-CEOs, Erwin Haitzmann and Peter Hoetzinger, expressed enthusiasm about expanding the company’s partnership with VICI through this deal. They further noted that the divestiture will liberate capital for enhancements to The Nugget and other general corporate objectives, while still permitting Century Gaming to manage the Canadian properties.
Upon finalizing the agreement, Vici will incorporate Century’s Canadian holdings into its existing assets by broadening its primary lease contract with its subsidiary.
This action will expand the master lease to encompass the entire initial 15-year base period and yield a rent escalation of CA$17.3 million.
Vici executives, Haitzmann and Hoetzinger, alluded to their intentions for the additional revenue, remarking, “We are evaluating avenues for utilizing a portion of these earnings to reduce outstanding debt within our credit facility. We are also contemplating returning value to stakeholders, possibly via stock repurchases or one-time dividend payments. Enhancing our capital deployment strategies remains a key objective.”