Deutsche Bank to sell $400m stake in Red Rock Casinos

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Deutsche Bank is preparing to cash in on a $400m stake in Las Vegas gaming group Red Rock. The Financial Times reports it will give the bank a “boost” at a time of lingering concerns over the state of its balance sheet.

Formerly known as Station Casinos, Red Rock Resorts operates more than a dozen casinos across Nevada and California. It disclosed last week that the German bank planned to sell its entire 16.9% holding. Deutsche governance controversially invested in the gaming group in 2011 as the operator looked to avoid bankruptcy. The bank agreed to hold around $1bn of its debt as part of a two-year bankruptcy reorganization.

The Department of Justice is seeking to levy a $14bn fine against the bank which could dramatically affect its cash reserves. Last month it was pointed out that the bank’s options for raising this kind of capital are extremely limited.

For months Deutsche has been advised to sell assets in order to free up additional capital. Therefore, it would make sense for Europe’s largest investment bank to sell its position in Red Rock Resorts, as the IPO has performed well, and the lock-up period ends soon.

About the Author

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Stefan Kachakov
My name is Stefan Kachakov and I’m working as content writer at Business News Feeds. I'm writing for business news, finance statements and business management for North, Central and South Americas and Europe.

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