Century Casinos, Inc. announced today that its subsidiary Century Casinos Europe GmbH signed the final share sale agreement with LOT Polish Airlines and closed on the transaction to purchase an additional 33.3% ownership interest in Casinos Poland Ltd (“CPL”).
CPL is the owner and operator of eight casinos throughout Poland with a total of 317 slot machines and 77 gaming tables.
Century Casinos, Inc. now owns a 66.6% ownership interest in CPL.
As of the nine months ended September 30, 2012, CPL had a 43% share of the Polish casino market and is currently participating in other pending license applications.
For the year ended December 31, 2012, CPL recorded net operating revenue of USD 44.0 million, EBITDA of USD 4.5 million and net income of USD 1.3 million (all based on average PLN to USD exchange rates for the same period).
As of today, Century Casinos, Inc. will begin consolidating CPL as a majority-owned subsidiary with a controlling financial interest.
The Company will account for and report the 33.3% owned by CPL’s co-shareholder, State-owned Polish Airports, as a non-controlling financial interest.
The purchase price of the investment was approximately $6.8 million, financed with borrowings under the Company’s Bank of Montreal Credit Agreement.