Icahn sells two casinos to his real estate firm
Tuesday, Jan. 6, 2004 | 10:51 a.m.
A real estate partnership controlled by casino owner Carl Icahn has agreed to purchase the two Arizona Charlie's casinos in Las Vegas from Icahn for a total of $125.9 million.
The deal, initially discussed in November, would further consolidate Icahn's casino properties under one company.
Similarly, an affiliate of Mt. Kisco, N.Y.-based American Real Estate Partners LP -- which initially had a 50 percent stake in Icahn's Stratosphere resort -- earlier acquired the rest of the property from Icahn.
Under the deal, American Real Estate Partners' gaming subsidiary American Casino & Entertainment Properties LLC would buy Arizona Charlie's Decatur and Arizona Charlie's Boulder from Icahn. The acquisition is subject to approvals from gaming regulators but isn't subject to financing, the partnership said in a statement Monday.
In connection with the transaction, American Casino intends to raise $200 million in debt financing.
Upon the closing of the transaction, American Real Estate Holdings Limited Partnership, another subsidiary of the company, will transfer 100 percent of common stock in the Stratosphere resort to American Casino.
Inquiries about the reason for the sales were referred to American Real Estate Partners Chief Financial Officer John Saldarelli, who declined comment.
Icahn is the board chairman of the general partner of American Real Estate Partners and owns more than 80 percent of the company's stock.
American Real Estate first disclosed in a securities filing in November that it was in talks to acquire two Las Vegas properties from Icahn. Besides the Stratosphere resort in Las Vegas, which is already owned by American Real Estate, the Arizona Charlie's properties are the only casinos Icahn owns in town.
In the November filing, the partnership also said it had retained a real estate broker to help it sell other real estate properties to raise cash and "diversify its operations." The company said it would market for sale properties with a book value of about $340 million. The company also said it was exploring the acquisition of a variety of businesses, including purchases in the entertainment sector such as casinos and movie theaters.
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