Century Casinos Stock Surges After Strategic Review Announced
- 07 Aug 2025
- Gambling News
After the regional casino operator announced that it is starting a strategic evaluation, shares of Century Casinos (NASDAQ: CNTY) surged Thursday. According to at least one analyst, a sale or merger is the preferred option.
Investors are excited about Century Casinos' plan to potentially unlock shareholder value, something they have been demanding since the stock has been a bust, dropping 72.44% over the last three years. The company's stock is up 10.41% on volume in midday trading, which is already five times higher than the daily average.
"Following various inquiries from third parties about potential asset sales and strategic partnerships, 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,” said co-CEOs Erwin Haitzmann and Peter Hoetzinger in a statement.
A sale of the company, an assessment of partnerships or possible mergers, a simplification of its capital structure, or "opportunities to unlock value within our existing property portfolio" are all possible components of the strategic review, the company noted. There is no set timeframe for when the evaluation will be finished.
Analyst Says Sale/Merger Is the Preferred Outcome
Investors would probably prefer to see Century carry out a merger or sell itself completely, according to a report sent earlier today to clients by Stifel analyst Jeffrey Stantial.
“Sale/merger likely remains the preferred outcome for shareholders, and while management’s view of fair value could drive wide bid/ask for potential acquisitions/mergers, we expect strong interest,” he wrote.
Stantial went on to say that because of the acceleration at Century's two casinos in Missouri and the "perceived turnaround opportunity" at the Nugget in Sparks, Nevada, and the Rocky Gap casino in Maryland, potential buyers are more likely to be from the private equity sector than "strategics."
“We see potential upside at the recently acquired Nugget Casino and Rocky Gap properties, while increasing U.S. exposure coupled with a potential sale of the low-multiple Poland business should help narrow a longstanding valuation discount to peers,” adds Stantial.
In the past, management have stated that divestitures of the business's foreign assets are still being considered. The company has also stated that it is willing to selling its two-thirds ownership in Casinos Poland and has monetized some of its Canadian real estate holdings.
Analyzing Potential Candidates for the Century
Because other gaming businesses are unlikely to be interested in the entire company, Stantial thinks Century could attract interest from a private equity group. He pointed to Boyd Gaming's (NYSE: BYD) and Golden Entertainment's (NASDAQ: GDEN) stronger balance sheets as potential catalysts for those operators' interest in Century properties, though it's unclear.
Because Golden sold the aforementioned Maryland casino to Century, it may only be interested in the Nugget in Sparks from Century's portfolio, which is only focused on Nevada. The target's management team probably thinks the firm is worth more than its share price suggests, so an all-cash bid might not be enough to get them to the negotiating table. As a result, prospective purchasers of Century might need to shell out a sizable sum of equity.
“If ultimately pursuing a sale of the company, we would expect compensation to include material equity financing given management’s perceived value of shares likely sits well above likely cash offer levels. CNTY owns a diversified portfolio of assets with likely few operators interested in owning all,” concludes Stantial.
