Apparently Great Canadian Gaming is a highly sought after company. We know from recent knows that Apollo Global Management Inc. has bid to take it over, even in the face of stakeholder opposition.
Many of the casino operator’s shareholders are saying “no way.” This is not helpful to the deal, which follows upon another unsuccessful bid this past June.
The final decision will come soon at the next shareholders’ meeting on Dec. 23. Everyone will get to vote on the $2.5 billion Apollo offer.
Reportedly, Apollo’s interest in buying up shares goes back to late August, when the company indicated a bid in the range of C$38 to C$41 a share.
The board of the gaming company talked about an auction but elected against it. Then, it accepted C$39 per share bid from Apollo as announced November 10.
Rival interest in Great Canadian should strengthen the hand of top shareholders like BloombergSen Inc., CI Financial Corp. and Burgundy Asset Management.
A bit of background: Great Canadian is a prize. After all, it operates 25 gaming, entertainment and hospitality facilities across Canada. A special committee of the board had considered other potential buyers, but failed to follow suit, fearing ruining the existing deal on the table.
No matter since the June suitor walked away. All kinds of meetings ensued over possible purchases before Apollo entered the picture with a sparking but unsolicited offer in late August.
The same special committee, with the help of its lawyers and advisors, reviewed a financial analysis of the deal and its accompanying business plan.
Scotiabank came back with a formal opinion that the Apollo offer was “sufficiently compelling to “sufficiently compelling to warrant entering into exclusive negotiations.”