The sale of casinos is thwarted
The Canadian Press – November 11, 2020 / 9:40 AM | Story: 316119
The Great Canadian Gaming Corp. Agreement to be acquired by a US private equity firm for $ 3.3 billion was quickly rejected by some minority shareholders of the casino operator on Wednesday.
Apollo Global Management Inc. has agreed to pay $ 39 per share for the company – a price that the Great Canadian CEO says is very good for shareholders.
But Bloombergsen Investment Partners, a Toronto-based investment company that owns about 14 percent of Great Canadian’s share capital, told an investor appeal that the Apollo deal is nowhere near the true long-term value of the stock.
Representatives of fellow minority shareholders Madison Avenue Partners and Breach Inlet Capital investors said they would also vote against the Apollo deal, which is subject to various shareholder and regulatory approvals.
Among other things, the investors said Great Canadian should have looked for alternatives to the Apollo bid, announced late Tuesday ahead of the company’s planned third-quarter financial report released Wednesday.
Great Canadian Gaming shares were up more than 35 percent when the Toronto Stock Exchange opened, earning $ 10.11 to trade against $ 39.02 in early trading.
The company operates 25 gaming, entertainment and hospitality facilities in Ontario, British Columbia, New Brunswick and Nova Scotia.
Great Canadian says the board of directors has unanimously recommended that shareholders vote in favor of the transaction at a meeting expected to be held in December.
Once the deal is finalized, Great Canadian headquarters are expected to remain in Toronto, led by a Canadian management team.