Century Casinos Inc. announced today that it has acquired a 7.5 percent stake in the Argentina-based Mendoza Central Entretenimientos S.A. for million. Century also has a three-year option to raise its stake in MCE to 50 percent, at a price equal to five times MCE’s EBITDA, minus MCE’s debt. Century and MCE also have entered into a consulting services agreement, in which Century will help MCE in project assessment, compliance and operating procedures, staff training and also offer general casino management expertise. Century will be paid a fixed monthly consulting fee, plus a percentage of MCE’s EBITDA.
MCE has the exclusive long-term concession agreement with the Provincial Institute of Gaming and Casinos of the Province of Mendoza to lease slot machines and provide technical services to the Casino de Mendoza, owned by the Province of Mendoza. Currently, MCE has placed 600 slot machines at the Casino de Mendoza and receives 43 percent of the revenue generated by them. Like the U.S., Argentina has no standardized gaming law at the federal level, but leaves it to the provinces to regulate and control gaming activities.
For the MCE deal, Century has partnered with affiliates of Uno Medios, one of Argentina’s largest multimedia holding companies. Uno Medios was founded in 1983 with the acquisition of Radio Nihuil Mendoza by the Vila family.
