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The billionaire investor first acquired an interest in Las
Vegas-based Tropicana in 2008 when it was in the throes of
bankruptcy.
The deal announced on Monday sells six of the eight casino
properties it now runs to Gaming and Leisure Properties <GLPI.O>
$1.21 billion.
The casino operations will be taken over by another U.S. casino
operator, Eldorado Resorts Inc <ERI.O>, which will pay the
remaining $640 million and lease the properties from GLPI for an
initial 15-year period.
Icahn’s firm Icahn Enterprises <IEP.O>, which owns a majority
stake in Tropicana, typically buys undervalued assets, improves
their operations, and ultimately sells them at a profit.
Tropicana emerged from bankruptcy protection in 2010 under a
$200 million deal backed by Icahn, and owns and operates eight
casinos and resorts in Indiana, Louisiana, Missouri,
Mississippi, Nevada, New Jersey and Aruba.
Icahn Enterprises said in its statement that the deal did not
include the company's Aruba casino and resort in the Caribbean,
which would be sold separately as a condition of closing the
deal.
Eldorado owns and operates twenty properties in ten U.S. states,
including Colorado, Florida, Iowa, Louisiana, Mississippi,
Missouri, Nevada, Ohio, Pennsylvania and West Virginia.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Shailesh
Kuber and Patrick Graham)
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