Apollo Acquires Partnership with Great Canadian
The Great Canadian Gaming Corporation, listed in Toronto, announced Tuesday that it has entered into a definitive arrangement to be purchased by Apollo Global Management. In the terms of the transaction, the investment manager acquires all of the company's outstanding common stock at a price of C$39.00 per share.
Premium Fair Share On Sale
Great Canadian will remain a Canadian company controlled by Canadian management and executives of the Canadian board following conclusion of the deal estimated at C$3.3 billion. The buyer also anticipates such entities in the country being equity co-owners in the gaming enterprise by investing alongside the investment management firm in the acquisition process, which has a track record of successfully controlling companies in heavily regulated sectors.
The investment manager's proposed price which failed to acquire William Hill, a sports betting firm, represents a 35% premium on the market closing price the day before the announcement, as well as a 59% premium on the 30-day volume weighted average price (VWAP) as of November 9, 2020.
Apollo has substantial expertise in the gaming industry through the activities of Aliante, Gala Coral, Gamenet and PlayAGS, formerly known as American Gaming Systems. Apollo has a reputation for being a proactive investor in sectors ranging from entertainment to agriculture, chemicals and aerospace, in addition to actively expanding and increasing gaming activities in the UK, the US, and Italy.
“…we believe Apollo’s extensive experience in the gaming sector will provide additional strategic benefits to help expand our gaming and hospitality offerings and to secure our position as a long-term market leader.”
Rod Baker, CEO, Great Canadian Gaming Corporation
Approval Stakeholder Recommendation
The board of directors at Great Canadian accepted the deal with Apollo unanimously, as the agreed price provides a significant premium to shareholders and is in the company's best interest. Fairness views from Scotiabank and CIBC World Markets Inc have both indicated that the offer is financially acceptable to shareholders and Great Canadian board has recommended that the agreement be accepted to shareholders of the group.
“With an industry-leading portfolio of assets and established presence in the best geographic markets across Canada, we are excited to help bring an enhanced experience to more guests across Canada.”
Alex van Hoek, Partner, Apollo Global Management
Established in 1982 and currently running 25 gaming and hospitality facilities in Ontario, British Columbia, Nova Scotia and New Brunswick, the coronavirus epidemic that triggered property shutdowns in March hit hard.
“We also recognize the challenges of the current circumstances and are committed to working with the management team, regulators and health authorities to allow the Company to reopen its properties as soon as it’s safe to do so.”
Alex van Hoek, Partner, Apollo Global Management
Closing terms would be subject to the conclusion of the company deal, requiring permissions by state and national authorities, shareholders and Supreme Court of British Columbia.
