A source close to the deal between Casinos Austria and the owners of Club Hotel Casino Loutraki, reported two days ago to the Tel Aviv Stock Exchange (TASE), yesterday claimed that, in contrast to a Tuesday “Globes” report, the Casino Loutraki shareholders, Club Hotel and Resido FIBI, are expected to derive substantial benefits when the deal is completed in two months.
The source added that the Israeli owners would receive €120 million, to be paid by the Casinos Austria group to a joint company that would hold the controlling interest in Casino Loutraki, in exchange for the voting rights in this company. The payment will be divided equally between Club Hotel, controlled by Moshe Boblil and Nissan Khakshouri, and Resido FIBI, owned by TASE-listed companies Queenco and Miloumor.
The announcement to the TASE said that Casinos Austria, which controls dozens of casinos around the world, would be a partner in a foreign company, the remaining shares of which would be held by Israeli investors. The Israelis will transfer the 78% controlling interest in Casino Loutraki to the new company.
Casinos Austria will receive both 25% of the voting rights in the joint company and preferred shares. The value at which the joint company will acquire the controlling interest in Casino Loutraki reflects a 14 profit multiple for the casino. It was reported on Tuesday that the deal reflects a €500 million value for the casino and the nearby hotel, or €570 million, if the share of the Loutraki municipality is taken into account.
The above-mention source yesterday asserted, however, that the company value at which the joint company would acquire the shares in Casino Loutraki was €670 million, subject to adjustments after the 2002 financial reports are published. This would set the amount the joint company will pay for the shares at €450 million.
After deducting its 75% share in the joint company, Club Hotel and Resido FIBI will receive €120 million from Casinos Austria. The source calculates that counting the dividend to be distributed this year, the Casino Loutraki controlling shareholders will rake in €150 million in the coming months (almost NIS 750 million).
Tuesday’s report also said that Casinos Austria would provide the joint company with financing including €74 million as a bank loan, for which a lien would be granted on the Casino Loutraki controlling interest.
The source said Casinos Austria would also inject another €45 million as a capital investment in the joint company when the deal is completed.
Published by Globes [online] - www.globes.co.il - on December 26, 2002