Century Casinos (NASDAQ:CNTY) is merchandising the holding on which Century Casino Calgary is situated for $6.5 million. The edifice is also included inward the dealing with Rowanwood Financial Properties.

Rowanwood Financial already paid $560,000 and the balance is due upon closing, which is expected to occur inwards 30 days.

Colorado-based Century sold the operating rights of the locus in August 2020 for $7.5 million, but maintained ownership of the existent landed estate assets and the sports bar, bowling, and entertainment amenities.

Century Resorts Alberta continues to operate Century Sports, a sports bar, bowling and amusement facility located on a portion of the property. Upon closing, CRA testament block operating Century Sports and testament reassign the take correspondence for the gambling casino premises to the Buyer,” according to a statement.

At the clip of the cut-rate sale of the operating rights, Century noted the Calgary cassino contributed simply $1.2 jillion to the operator’s overall earnings before interest, taxes, depreciation and amortisation (EBITDA) tally.

Small Transaction, Potentially Big Implications

Between the operating rights and real estate sales, Century is grossing $14 zillion from the Calgary casino. On the surface, that doesn’t sound the like much, but it’s not small alter relation to the operator’s $344.59 market capitalization.

However, the proceeds add to what’s ace of the strongest equipoise sheets among small-cap gaming names and could follow used to win unattended casinos from other operators this year. Owing to Century’s runway register of scooping upwards unloved assets from larger competitors and wringing note value from those venues, analysts widely expect the operator to be a buyer at some repoint this year.

“We believe this transaction (Calgary) farther simplifies CNTY’s story, and affirms management’s commitment to marketing non-core assets,” said Roth Capital psychoanalyst Black Prince Engel in a note to clients. “We also believe this highlights value within CNTY’s Canada segments, and adds believability to management’s allegiance to marketing Polska assets.”

Following the Calgary sale, Century has iv gaming venues in Canada. Engel believes it’s possible that, o'er time, the manipulator testament divest those holdings inward an sweat to taper its sharpen on the to a greater extent moneymaking US market. He rates the caudex a “buy” with an $18 terms target.

Keep an Eye on Poland

Century belike isn’t through with(p) selling assets located outdoors the US. The company is sounding to sell its two-thirds stake inward Casinos Poland and multiple unidentified parties are believe to be interested.

“On a normalized basis, we trust these casinos kick in ~10 percent of CNTY’s EBITDA. Management has already indicated interested buyers, although the pandemic has stalled a sale,” adds Engel. “After results rebounded inward 3Q21 (EBITDA +22 percent vs 3Q19), we believe continued strength inwards 4Q21 and 1Q22 testament facilitate draw in a stiff tender inwards 2022. We expect CNTY’s Poland sales event to generate o'er $40M inwards immediate payment proceeds, piece significantly simplifying CNTY’s investment funds story.”

A timeline for a trade in Republic of Poland isn’t known at this time.