Harrah's is to be floated on the stock exchange to unlock capital for investment in new casino projects.
The Wall Street Journal reported that Apollo Management and TPG, which each acquired a 23 per cent stake in the US-based operator in 2008, are set to make an initial public offering of US$575m.
It is estimated that Harrah’s’ equity value is somewhere in the region of $4.5bn, meaning the private equity firms each hold around $1bn in the company - $320m less than their initial investment.
In August, Harrah’s revealed that revenues for the first half of the year fell 2.6 per cent to $4,409m, down from $4,526m in the first half of 2009.
Income from operations for the first six months of the year was $225.5m, compared with $291.7m a year earlier.
Loss from continuing operations, meanwhile, stood at $466.1m, compared with income from continuing operations of $2,169m.
Although the downturn in the market - most notably in Las Vegas - has impacted negatively upon the operator, steps taken to reduce debts and streamline its business may make it an attractive investment.
