A definitive agreement to acquire funds controlled by affiliates of Apollo Global Management Inc. has been entered into by Great Canadian Gaming Corporation. Under the terms of the agreement, Apollo Funds will buy all Great Canadian common stock outstanding shares for C$ 39 per share in a deal with a gross enterprise value of more than C$ 3.3 billion.
The company reported in a statement that the selling price represents a 59 percent premium as of November 9, 2020 to the 30-day volume weighted average price.
Great Canadian, managed by a Canadian management team and with Canadian board members, will remain headquartered in Toronto following the completion of the deal. Apollo also anticipates that upon completion of the acquisition, some Canadian institutions will co-invest in the transaction to become equity owners in the business alongside the Apollo Funds.
Rod Baker, CEO, stated: “The Board of Directors, based on a recommendation from the special committee of independent directors, has unanimously concluded that this transaction represents the best course of action for the company. Factoring in our long-term prospects, this transaction will unlock value for our shareholders at a significant premium to our current share price.
“We are pleased that this transaction represents a great opportunity for our shareholders, while continuing to support the success of the business longer term. We believe this transaction is beneficial for our shareholders, our team members, our guests, and other stakeholders as we continue to execute on our operational and development plans into 2021 and beyond, while we navigate through this volatile time.
“In addition, 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.”
Apollo noted that it is committed to preserving the company’s current operating footprint and anticipates that under the control of its Funds, Great Canadian ‘s properties will increase.
Alex van Hoek, the firm’s Partner, said: “Great Canadian is a leader in the gaming and entertainment industry and, based on our experience and knowledge of the space, we see opportunities to work with their talented team to drive additional growth and value. 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.”
He added: “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. We’re excited for the company to welcome Great Canadian team members back to work, and we look forward to a time when employment and operations return to pre-COVID levels.
“We are of course also firmly committed to complying with applicable reopening rules as the health and safety of team members and guests will remain the highest priority.”