Wednesday, Feb. 20, 2002 | 11 a.m.
Park Place Entertainment Corp. announced today it is selling its Australian casino investments in a deal that could be worth more than $100 million.
Park Place is a 20 percent owner of Jupiters Ltd., which owns two casinos in northeastern Australia. Jupiters has agreed to buy back half of Park Place's stock, and institutional investors will purchase the remainder in a private sale.
Jupiters will pay roughly $50 million for half of Park Place's stake. The price of the institutional sale has yet to be determined, Park Place spokesman Robert Stewart said.
However, Park Place said it will continue to manage both Australian casinos for Jupiters.
Park Place will realize "a significant profit" on the sale, Stewart said. The company plans to use the proceeds to pay down debt.
Park Place holds 48 million shares of Jupiters stock, but as "founders" shares, the stock cannot be publicly traded.
"We're converting a previously illiquid investment into cash in a transaction that unlocks significant value for Park Place shareholders and gives Jupiters the freedom to expand its business," Park Place chief executive Tom Gallagher said in a statement.
"The conclusion of this deal will allow them (Jupiters) to call their own shots," Stewart said.
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