Web Analytics
canada 9
News

Higher Offer for Great Canadian Tempts Apollo Global

Apollo Global Management Inc. intends to score a deal with Great Canadian Gaming Corp. The Toronto-listed company, founded in 1982, operates gaming, entertainment and hospitality facility in four provinces across Canada.

To get its prize, Apollo is contemplating upping its $2.5 billion takeover bid.  However, disapproving shareholders are set on nixing the low ball offer. They assert it is well below Great Canadian’s true value at only C$39-a-share.

Some of Great Canadian’s largest shareholders are adamantly opposed. BloombergSen Inc. and Burgundy Asset Management Ltd. have made it clear where they stand. At the same time, the private equity firm is wary of overpaying given the diminished gaming revenues during the pandemic.

Great Canadian shares while reaching C$36.88 are not at the target price yet. Initially in August, Apollo indicated an offer between an offer of C$38 to C$41 per share. That final figure may be the one to secure the deal. It would not be outrageous given that the stock last February was as high as C$45.80. However, it has fallen over pessimism that a takeover will not occur.

It would certainly be more palatable to Apollo than the C$70 suggested, but can Apollo even approach this glass ceiling? The company is not confident about the ultimate effect of the pandemic and may be willing to walk away empty handed. A lot will be clear after the shareholders meeting this week.

Of note, Apollo had previously defended its offer, which had even been approved by Great Canadian’s board. According to sources, it delivers “significant and immediate value” to shareholders despite the negative effects of the pandemic.

Meanwhile, Great Canadian has been shutting several casinos per the government of Ontario Now nineteen of the twenty-six venues are not open for business.

Source: https://www.bloomberg.com/news/articles/2020-12-14/apollo-said-to-consider-higher-offer-for-canada-casino-operator

About the author

Stewart Muir

Stewart Muir

Stewart Muir is an experienced reporter in the field of nature, natural resources and arts. His hobby is watercolor painting and both professional and hobby-wise he is an expert.

He can be reached out at: muir.stewart@blog.ca

Add Comment

Click here to post a comment