Great Canadian Gaming Corporation recently made it clear it is one step closer to the coveted takeover discussed over the past few weeks. December 23 witnessed the highly-anticipated shareholders’ vote giving them the chance to express their position on Apollo Global Management acquisition of the casino operator. Some 79 percent of the shareholders gave a green light to the previously discussed deal.
Over the past month, one of Canada’s leading casino operators was working towards improving the conditions of a proposed takeover. A definitive agreement was first publicly announced at the end of November and ever since then, the conversation surrounding it has been quite polarizing. The acquisition was initially supposed to amount to some CA$2.1 billion in Great Canadian Gaming common stock.
Soon after the official announcement of this amount, several large stakeholders in the Canadian casino operator expressed their discontent with it. They made a point that CA$39 per share of the casino operator was an insufficient price and Apollo Global Management might have been taking advantage of the unprecedented situation around the globe. Following careful consideration, the US-based private equity company introduced a change to its bid.
A 15.4-percent increase of the initial definitive agreement was made, making it possible for one Great Canadian Gaming Corporation share to amount to some CA$45. This resulted in the overall bid reaching some CA$2.52 billion. December 23 was eyed as an important date for all parties involved in this proposed takeover, as it witnessed the vote of all shareholders directly affected by it.
The deal in its current form received the approval of 79 percent of the stakeholders. Major shareholders such as CI Global Asset Management were among the companies expressing their discontent with the deal in its original form, but it has also given a Yes to the updated version issued earlier this week. CI Global Portfolio Manager Stephen Groff elaborated on the subject.
He pointed out that the current unprecedented situation should not guide the acquisition deal, as things will eventually go back to normal. The asset manager mulled over different scenarios and this updated takeover bid was evaluated as the more lucrative for all shareholders associated with the leading casino operator.
Some of the stakeholders opposing the initial offer were Bloombergsen Investment Partners and Burgundy Asset Management. Now that these parties have given their nod, regulatory approval will have to be obtained, so that the acquisition could continue and stick to its timeline. Projections are that the second quarter of 2021 would close the deal.
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. Now the shares have marked a 52-percent surge when compared to their condition in mid-November. Great Canadian Gaming Corporation wants to be acquired by Apollo Global Management, Inc. striving to improve its gambling and hospitality potential.