Harrah’s Entertainment has been acquired by Texas Pacific Group (TPG) and Apollo Management for US$17.1bn (£8.7bn, 13bn euro).

Under the terms of the agreement, the private equity groups have also agreed to assume debts of US$10.7bn (£5.5bn, 8.1bn euro).

Harrah’s shareholders will receive US$90 (£46, 68.5 euro) in cash for each outstanding share, representing a premium of around 36 per cent over Harrah’s closing share price two months ago.

Robert Miller, co-chair of the special committee, said: “After careful consideration of the full range of strategic alternatives, the special committee and the full board concluded this transaction is in the best interest of Harrah’s stockholders. Apollo and TPG are both leading private equity firms with proven track records and strong reputations.”

The transaction is expected to complete in around one year. It is subject to stockholder approval, regulatory approvals and customary closing conditions.

Harrah’s owns US-based casino group Caesars and recently acquired UK-based casino operator London Clubs International. Details: www.harrahs.com