Denver, CO – Shares of Century Casinos Inc. (NASDAQ: CNTY) surged more than 10% Thursday after the regional gaming operator announced it has launched a strategic review, signaling potential moves such as a sale, merger, or asset restructuring aimed at unlocking shareholder value.
Trading volume spiked to over five times the daily average, reflecting strong investor enthusiasm. The rally comes after a prolonged slump for Century stock, which has lost more than 72% over the past three years.
Strategic Review: What’s on the Table?
In a joint statement, co-CEOs Erwin Haitzmann and Peter Hoetzinger said the company has received multiple inquiries from third parties and is now formally evaluating options to optimize its portfolio and enhance long-term value.
“We have initiated a strategic review process as part of our ongoing commitment to driving long-term value creation and optimizing our portfolio of assets and operations,” the executives said.
The review may include:
- A full or partial sale of the company
- Mergers or strategic partnerships
- Capital structure optimization
- Divestiture or repositioning of existing assets
No timeline has been set for the conclusion of the review.
Analyst Perspective: Sale or Merger Favored
In a note to clients, Stifel analyst Jeffrey Stantial said a sale or merger is likely the most attractive outcome for shareholders.
“While management’s view of fair value could create a wide bid/ask spread, we expect strong interest,” Stantial wrote.
He noted that private equity firms are more likely suitors than strategic gaming operators, citing:
- Strong performance at Century’s Missouri properties
- Turnaround potential at the Nugget Casino Resort in Sparks, Nevada
- Value upside at Rocky Gap Casino Resort in Maryland
Stantial also pointed to Century’s international holdings, particularly its two-thirds stake in Casinos Poland, as a potential divestiture target. The company has previously monetized Canadian assets and indicated openness to selling non-core international properties.
Potential Buyers & Deal Structure
Stantial suggested that Boyd Gaming (NYSE: BYD) and Golden Entertainment (NASDAQ: GDEN) could be interested in select Century assets, though not the entire portfolio. Golden previously sold Rocky Gap to Century and may only target the Nugget in Sparks to complement its Nevada-focused strategy.
Given management’s belief that Century is undervalued, any acquisition may require significant equity financing, as an all-cash offer might not meet internal valuation expectations.
“CNTY owns a diversified portfolio of assets with likely few operators interested in owning all,” Stantial concluded.
Investor Takeaway
Century’s strategic review marks a pivotal moment for the company, which has long traded at a discount to peers. With private equity interest rising and asset-level performance improving, shareholders may finally see movement toward a value-unlocking transaction.
