A cash out by the former mayor of Vancouver in the amount of $1.9 million is at hand. While Great Canadian Gaming Corp is being sold to Apollo Global Management (GCGC) in a $3.4 billion deal, Larry Campbell is releasing his shares of the company.
Of course he is the director of the Toronto-headquartered entity. Apollo intends to pay $39 per share. The board, which includes Campbell, and all executives have so rar unanimously agreed to the terms.
And why not? The deal is a 35% premium compared with the November 10 closing price. Campbell holds 50,252 shares but he will have to wait until December 23 to see if a majority of shareholders inks the deal. Some minority shareholders are voicing opposition. They seek a higher offer more in line with the true value of GCGC.
Public inquiry underway
Already back in mid-2018, GCGC started soliciting offers. A big drop 87% in revenues is no doubt the cause. Meanwhile Campbell is mum given the on-going allegations of money laundering at its British Columbia River Rock Casino and Resort.
A public inquiry is underway.
The Commission of Inquiry is looking for evidence of suspicious activity on the part of casino investigators. Apparently, the staff as well failed to report certain illegal transactions to FINTRAC.
It has been shown that casino managers had favored certain VIP gamblers, some crime bosses. Even assaults on staff went unreported. Of particular concern is the fact that GCGC executives voiced their opposition to informing police and regulators about the lack of enforcement of laws on casino floors.
Testimony before the Commission claims that River Rock and other local casinos in the province had routinely accepted bundled up, drug-covered cash. This exacerbates Campbell’s oversight of GCGC.
As a former RCMP officer and chief coroner for the province, this is indicative of serious failings. Remember that he was elected mayor on a progressive platform in 2002? Of note, particularly advocated for ending drug addiction. In 2005, the Liberal Party of Canada appointed him as a senator, but he went independent in 2014.
The issues in British Columbia involve casino business with China. Campbell became involved as a director of China-based manufacturer and retailer CY Oriental Holdings Ltd. from May 2006 to April 2009. It was not until 2008 that he joined GCGC.