The news is out. Great Canadian Gaming has agreed to acquisition by Apollo Global Management, a private U.S. equity firm. The terms of the deal are $39 per share or a total of $3.3 billion.
Richmond-based Great Canadian is known to operates 25 casinos, racetracks and associated entertainment and hospitality facilities in British Columbia, Ontario, New Brunswick and Nova Scotia.
This takeover price constitutes a 35 percent premium over the last closing price. However, it is far below the pre-pandemic amount of $48.50 in February of this year. Of note, Great Canadian Gaming shares recently closed at $28.91 on the Toronto Stock Exchange.
The board of Great Canadian has unanimously recommended that shareholders vote in favor in December at the upcoming stockholder’s meeting. There are U.S. and Canadian investors involved in the decision.
Fortunately, Great Canadian is expected to remain headquartered in Canada and led by a Canadian management team.