Peermont Global and its empowerment partner, Marang, will buy the shares held by Peermont's US partner in Caesars Gauteng hotel and casino resort on the east Rand for $145m , Dow Jones reported yesterday.

Hotel and entertainment group Peermont, which listed on the JSE Securities Exchange SA in September, issued a cautionary notice on December 10 advising that it was engaged in negotiations.

CEO Ernie Joubert yesterday confirmed that an announcement would be made today giving details of the transaction.

Dow Jones, quoting from a statement issued by New York-listed Caesars Entertainment , said Peermont and Marang (East Rand) Gaming Investments would buy Caesars Entertainment's 25% stake in the casino, and Peermont would also acquire a 50% interest in the company that manages Caesars Gauteng, which will then change its name.

This transaction is in line with other disposals by Caesars Entertainment ahead of its merger with Harrah's Entertainment . Caesars Entertainment has recently sold a casino resort at Lake Tahoe and a casino in New Orleans.

"We are proud of the relationship we have built with our partners in SA, especially Marang," Caesars Entertainment president and CEO Wallace Barr said in the statement on the company's website.

"We are equally proud of the best-in-class experience that we have created together for our customers at Caesars Gauteng."

Barr said he was confident that Peermont , which had been the group's development and operating partner since the beginning, would continue the strong tradition of service and corporate responsibility the joint venture had established.

Joubert said the total cost of the deal, including hedging costs, would be equivalent to R870m, financed with loans from RMB and Nedbank to GRER Holdings , which owns 100% of Global Resorts (East Rand), Caesars Gauteng's operator.

After the deal, Peermont's economic interest in GRER will rise to 82,96% until December 31 2016, when it will dilute to 66,66% as a result of the empowerment agreement.

Peermont and Marang will continue to exercise 50% each of the votes in GRER . Peermont's interest in the management company will rise to 100%, from its current 50%, after buying the Caesars stake.

Joubert confirmed Caesars Gauteng would be renamed and said Caesars Entertainment also exercised rights over some of the other brands within the resort. The group is currently busy with trademark registration.

Peermont has already secured advance undertakings from shareholders to support the transaction, but it is still subject to the approval of the Gauteng Gambling Board and the competition authorities.

Caesars Gauteng has 276 rooms and suites, a casino with 1640 slot machines and 67 table games, 10 restaurants, a spa, shops and conference facilities.

Business Day