Park Place Entertainment (NYSE: PPE) announced today that it has entered into a definitive agreement to sell the Flamingo Hilton Reno to Sapphire Gaming for approximately $20 million. The transaction is expected to close by June 30, 2000. Prior to the close, Park Place Entertainment will continue to own and operate the facility.
Following completion of the transaction, the property will retain the Flamingo name under a long-term licensing agreement with Park Place Entertainment. Sale of the property will allow Park Place Entertainment’s Northern Nevada management team to focus on the Company’s flagship property in the region, the Reno Hilton.
The transaction is subject to regulatory approval and will result in a non-cash, after-tax loss in the fourth quarter of 1999 of approximately $16-18 million.
Park Place Entertainment is the world’s largest gaming company with a leading presence in Nevada, New Jersey and Mississippi—the three largest gaming markets in the United States.
Additional information on Park Place Entertainment can be accessed through the Company’s 24-hour investor relations service. Individuals may call toll-free 877-PPE-NYSE (877-773-6973) or visit www.parkplace.com to obtain the latest Company news and stock price information, or to request information by email, fax or postal mail delivery.