Casino and hotel operator Circus Circus Enterprises Inc. said Monday it has agreed to acquire Gold Strike Resorts for more than $500 million.
The deal will give Circus Circus three new casinos and part of a new resort in Las Vegas.
The value of the deal was based on Circus Circus’ stock price, which shot up $3.62 1/2 in heavy New York Stock Exchange trading to end the day at $28.87 1/2.
Circus Circus will pay 17 million shares of its stock and some $12 million in cash for Gold Strike, and will assume the Jean, Nev.-based company’s debt.
In addition to owning the Las Vegas casinos, Gold Strike holds a 50 percent interest in the Grand Victoria riverboat casino in Elgin, Ill., which is also operates.
It is also involved with Mirage Resorts Inc. in the development of a $300 million, 3,000-room resort on the Las Vegas Strip. Gold Strike owns a 50 percent interest and serves as managing partner of the project, which is scheduled for completion in 1996.