Cirsa invests us$ 20 million in Argentina due to an alliance with Casino Club

According to a press release issued by the gambling operator located in Terrassa (Barcelona): "The agreement states that both parties will collaborate in any future operation in the gambling activity developed in Argentina, and this way, Cirsa consolidates its presence and expansion in that market".

As part of this strategic alliance, Cirsa, Casino Club and Hapsa (Palermo horse racetrack) have signed a temporary union of companies (UTE), in which Cirsa owns the 50% with which they will administrate Cirsa riverboat casinos in Buenos Aires.

With this contract, Casino Club and Hapsa aim to invest us$ 120 million to expand the business, according to the press release.

The agreement will be supervised by a board of directors composed by five members, three of which will be appointed by Cirsa, which mantains the ownership of all its existing properties, including licenses and other assets to be managed according to UTE agreements.

Besides, Cirsa has aquired a 50% share in the license of Casino de Rosario by US$ 20 million, where Casino Club has invested us$ 40 million, since it was granted the 30-year operating license for the first and only casino in the city, as a result of a tender process held in May last year.

Casino de Rosario complex will include a casino and a five-star hotel with a convention center in a 70,000 sqm area. The 27,000 sqm casino will start operating in the first semester of 2009 with 2,000 slots and 70 table games.

According to Joaquim Agut, General Manager of Cirsa, "Agreements with Casino Club, a well-known and consolidated leader in the gambling sector in Argentina, represent an important step forward with regards to our strategy in the country and in Latin America as well, in order to obtain a profitable growth and increase our ’cash-flow’ -profits plus recouping".

Manuel Lao Hernández, president and owner of Cirsa, commented: "This operation allows the consolidation of the presence of our firm and assures the growth of the group in the Argentinian market without significant capital contributions or more indebtedness".

Casino Club is headed by Cristóbal López and was formed in Comodoro Rivadavia in 1991. Since then, it has had a constant growth up to present. Nowadays, it has more than 1,700 employees in its 12 casinos and 17 slot halls.

On top of that, Cirsa Corporation, headed by Manuel Lao Hernández, has 16,000 employees and last year had a turnover of more than 2,000 million euros. It owns 24 traditional casinos, 74 electronic casinos, almost 100 bingo halls and more than 85,000 recreational machines, hotels and casinos worldwide.

Cirsa has presence in 70 countries and has invested more than 45 million euros in I+D+i in the last three years.