Great Canadian Gaming Corporation might be facing great changes in the foreseeable future, as its definitive agreement with Apollo Global Management Inc. witnessed some changes. The New York-based private equity company now offers a 15-percent increase of its bid for purchasing the casino operator. The new offer amounts to some $2.52 billion.
The Canadian gaming leader has witnessed an elaborate conversation regarding its proposed acquisition by Apollo Global Management. Mid-November, Canadaās gaming field witnessed a major move being made, one of its leading casino operators entered a definitive agreement for its purchase. Great Canadian Gaming Corporation wants to be acquired by Apollo Global Management, Inc. striving to improve its gambling and hospitality potential.
Takeover Bid Hike
The acquisition was initially supposed to amount to some CA$2.1 billion in Great Canadian Gaming common stock. However, several large stakeholders in the Canadian casino operator expressed their discontent with it. Burgundy Asset Management recently pointed out that the conditions of the arrangement are not favorable for the shareholders associated with the casino operator. According to the recent statement, the proposed price for the purchase and for the individual shares is too low.
Bloombergsen Investment Partners was also among the shareholders opposing this decision. The Toronto-based investment firm owns about 14 percent of the casino leaderās equity. The growing discontent among shareholders has triggered the conversation once again and some changes were recently introduced. They made a point that the unprecedented situation has taken its toll on the field.
Moreover, Great Canadian Gaming Corporation faces post-pandemic recovery, the gradual reopening of casino locations, as well as the construction of brand new casino complexes. This calls for a higher price per share of the casino leader. The original definitive agreement came with the payment of CA$39 per every Great Canadian Gaming share.
Shareholders Support
Now the hiked takeover bid comes with $45 per share. Apollo Global Management decided to swell its takeover bid by 15 percent and its current amount equates to $2.52 billion. The changed conditions appear to be appealing to the large shareholders part of the Great Canadian Gaming Corporation structure. The US-based private equity firmās new bid received the approval of stakeholders with 50 percent of the stock. Such support makes the takeover much more possible.
What should be pointed out is that December 23 is projected to see the ultimate vote on the new offer, allowing all parties involved to express their position. Stakeholders were worried that Apollo Global Management might be taking advantage of the unprecedented situation in Canada and around the globe by offering less for the casino operatorās shares. It could be recalled that the first days of November witnessed Great Canadian Gamingās shares dropped by a third when compared to January 2020.
Following the improved takeover bid on December 21, shares marked a surge amounting to some 17 percent to $43.51 on the Toronto Stock Exchange. Great Canadian Gaming Corporation Chairman Peter Meredith made it clear this bid increase would have a positive impact on the overall takeover conversation, introducing greater benefits for the shareholders and ultimately the casino operator.
