Park Place Entertainment Corporation (NYSE: PPE) today announced that it has agreed to sell to institutional investors its remaining 24 million shares in Jupiters Limited, a publicly traded Australian casino company. Net proceeds of the sale are expected to be approximately US $50 million.
Combined with the expected US $50 million in net proceeds from Jupiters’ repurchase of 24 million shares, Park Place expects that the total after-tax proceeds from the sale of its 48 million Jupiters shares will be approximately US $100 million. The 48 million shares represent a 20 percent equity stake in Jupiters. Park Place expects that both transactions will close in the second quarter of 2002. Park Place will recognize an estimated gain of approximately US $20 million during that quarter.
Both transactions are subject to shareholder, regulatory and governmental approvals and financing arrangements by Jupiters. Park Place will continue to manage both of Jupiters’ Queensland casinos - Conrad Jupiters Gold Coast and Conrad International Treasury Casino-Brisbane.