Chilean casino operator Enjoy has completed the acquisition of 55pc of the shares of Baluma SA, operator of Conrad Punta del Este Casino Resort. In this way the firm has obtained the full ownership of one of the most prestigious casino hotels in Uruguay.
The full acquisition is completed after issuing a bond for US$300m at an interest rate of 10.5pc per annum. Although the company did not reveal how much it paid for the remaining shares of the company according to local press it could have been as much as US$189m.
Gerard Cood, Enjoy CEO, commented: “We had a couple of alternatives, and we made the decision to go the way of a public bond in the US. We are supported today by four banks, which are two major international banks, Morgan Stanley and Credit Suisse, who play a more important role, and then BTG (BTG Pactual) with BBVA.”
As already announced by the firm, the Conrad hotel in Punta del Este is a key property within Enjoy’ strategic expansion plan in South America. Therefore, in addition to the acquisition, is expected a significant expansion of the facility, to increase its hotel capacity. The construction of the three towers planned in the complex will require an investment of about US$60m.