Clairvest Announces Proposed Sale of Its Interest in Rivers Casino
Toronto, Ontario (October 31, 2018) – Clairvest Group Inc. (TSX: CVG) (“CVG”), together with Clairvest Equity Partners IV (“CEP IV”, collectively “Clairvest”), announced today that Rivers Casino and its shareholders have entered into agreements whereby, among other things, Clairvest’s interests in the Rivers Casino will be acquired by Churchill Downs Inc.
Clairvest made its investment into the greenfield development of Rivers Casino in partnership with Rush Street Gaming and statutory minority investors in 2010. The business opened in July 2011 and has become the leading casino in the State of Illinois.
The proposed transaction is subject to regulatory approvals and is anticipated to close during 2019.
Should the transaction close on anticipated terms, the sale of Clairvest’s interests in Rivers Casino are expected to increase CVG’s book value by approximately $1.40 per share from the reported June 30, 2018 book value per share of $47.18. The increase reflects the value of CVG’s investment and the impact of carried interest from CEP IV and management participation entitlements.
Neil Bluhm, principal of Rush Street Gaming, our partner in Rivers Casino, said “Clairvest has been a great partner. They made the decision to invest in Rivers Casino in the depths of the financial crisis and it has been a very successful investment.”
Jeff Parr, Clairvest’s Vice Chairman, remarked, “Clairvest has enjoyed an excellent partnership with Neil Bluhm and the entire Rush Street and Rivers Casino management teams. We look forward to working together on other gaming projects in the future.”
Director, Investor Relations and Marketing
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753