Increased Likelihood of Great Canadian Gaming Corp. Takeover
Great Canadian Gaming Corporation may soon undergo significant changes as its agreement with Apollo Global Management Inc. experiences revisions. The New York-based private equity firm has upped its bid to purchase the casino operator by 15%, now totaling approximately $2.52 billion.
The Canadian gaming giant has been the subject of extensive discussions regarding its potential acquisition by Apollo Global Management. In mid-November, a significant move was made within Canada's gaming industry as one of its leading casino operators entered into a definitive agreement for acquisition. Great Canadian Gaming Corporation seeks acquisition by Apollo Global Management, Inc. in efforts to enhance its gambling and hospitality prospects.
Rise in Takeover Bid
Initially, the acquisition was set at around CA$2.1 billion in Great Canadian Gaming common stock. However, several major stakeholders in the Canadian casino operator expressed dissatisfaction with this arrangement. Burgundy Asset Management recently highlighted that the terms of the agreement are unfavourable for shareholders associated with the casino operator. According to their recent statement, the proposed purchase price and individual share price are deemed too low.
Resistance to Great Canadian Gaming Acquisition Grows
Bloombergsen Investment Partners, another shareholder, opposed this decision as well. The Toronto-based investment firm holds approximately 14% of the casino leader's equity. The escalating discontent among shareholders has reignited discussions, resulting in recent changes. They emphasised that the unique circumstances have taken a toll on the industry.
Criticism Mounts Against Great Canadian Gaming Acquisition
Additionally, Great Canadian Gaming Corporation faces challenges in post-pandemic recovery, gradual casino reopenings, and the construction of new casino complexes. This necessitates a higher share price for the casino operator. The original agreement stipulated payment of CA$39 per Great Canadian Gaming share.
Shareholder Support
The revised takeover bid now stands at $45 per share, reflecting a 15% increase, totaling $2.52 billion. The altered conditions appear favourable to major shareholders within the Great Canadian Gaming Corporation structure. Apollo Global Management's new bid has garnered approval from stakeholders holding 50% of the stock, making the takeover more likely.
Great Canadian Gaming Corporation Fiscal 2020 Q3 Financial Discussions
Notably, December 23 is slated for the final vote on the new offer, allowing all involved parties to voice their stance. Stakeholders expressed concern that Apollo Global Management might capitalise on the unprecedented situation in Canada and globally by offering less for the casino operator's shares. It's worth recalling that in early November, Great Canadian Gaming's shares plummeted by a third compared to January 2020.
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Following the enhanced takeover bid on December 21, shares surged by approximately 17% to $43.51 on the Toronto Stock Exchange. Great Canadian Gaming Corporation Chairman Peter Meredith affirmed that this bid increase would positively influence the overall takeover discourse, delivering greater benefits for shareholders and, ultimately, the casino operator.
Mark Patterson is the news writer at CasinosInCanada who covers the latest developments in the iGaming industry, including casino launches, regulations, and market updates.
The potential takeover of Great Canadian Gaming is a hot topic in the industry right now. It's a reminder of how volatile the market can be and the importance of strategic decision-making for both companies involved. Looking forward to seeing the outcome.
With all the uncertainty in the gaming industry right now, it's no wonder shareholders are pushing for a better deal. Great Canadian Gaming needs to ensure they're making the right moves to secure their future in this changing landscape.
The increased bid definitely seems like a step in the right direction for Great Canadian Gaming shareholders. It's crucial for them to feel valued in this process. Let's hope this leads to a mutually beneficial agreement.
The back-and-forth between Great Canadian Gaming and Apollo Global Management is quite the drama! It's interesting to see how shareholder discontent is driving these negotiations. Excited to see how this unfolds.