According to Bloomberg Law, which appears to have seen papers from Enjoy’s key creditors and lenders, the Latin American casino company Enjoy has signed a deal to combine its gaming and hotel business with that of rival casino operator Sun Dreams.
The Commission for the Financial Markets (CMF) issued information pertaining to the proposed merger from Enjoy.
Reaching an agreement
It stated: “On the afternoon of Friday, February 19, 2021, the President of the company, Mr. Javier Martínez, received a call from Mr. Henry Comber, a member of the Creditors Commission of Enjoy SA, who informed him that the Enjoy’s main creditors and future shareholders have reached an agreement with the casino operator group Sun Dreams, to merge it with Enjoy SA and that there was already an investment bank hired and advising them in this operation.
“We bear in mind that neither Enjoy’s board of directors nor its administration knew about this background nor do they have more information.”
“As of this date it is not possible to determine the probability or the impacts of a possible execution of the aforementioned operation,” it added.
Enjoy runs casinos in Antofagasta, Coquimbo, Vina del Mar, Rinconada, Santa Cruz, and Pucon in Chile, as well as a casino in Mendoza in Argentina, accounting for 37.6 percent of the market.
LatAm’s Biggest Casino
Sun Dreams is currently Latin America’s biggest casino operator. It has casinos in Iquique, San Francisco de Mostazal, Temuco, Valdivia, Coyhaique, and Punta Arenas in Chile, as well as eight casinos in Lima, Peru, two in Cartagena de Indias, Colombia, two in Panama City, Panama, and one in Mendoza, Argentina. It has a 38.8 percent market share in Chile. In the event of a merger, the new entity will dominate 76 percent of the casino industry.