Apollo Global has its eye on Great Canadian Gaming. In fact, it has made a bid in the amount of a whopping $2.5 billion for its outstanding shares.
It is going after one of the largest casino operators in Canada. Great Canadian Gaming is now at the center of a private equity takeover from the US mega group.
At stake are twenty-five properties across four provinces. The shareholders wanted a bigger offering but the deal has been struck and it is the biggest of its kind for a Canadian operator. Boombergsen Investment Partners will have to be content with the amount proffered even if they feel it undervalues the operator. Two of minority shareholders are Madison Avenue Partners and Breach Inlet Capital Investors. They are also opponents of the offer.
Reportedly, Apollo won’t be making drastic management changes as it is committed to maintaining the company’s current operational footprint. It will continue to be headquartered in Toronto and led by a local management team. In fact, it anticipates GCGs properties will increase under the Apollo Funds’ ownership.
Most of the GCG Casinos are based in Ontario, including Casino Woodbine. A major land-casinos is the River Rock Resort in British Columbia. They have all been suffering the repercussions of the pandemic closures.
Meanwhile, Ontario wants to halt the monopoly of online gaming and will soon be allowing operators to offer iGaming. This could impact Apollo’s bid as it no doubt recognizes the benefit of such a move to the gaming industry.
GCG Shareholders will soon vote on the offer.