Great Canadian Gaming Corporation is paving the way for its acquisition ahead of the official closing of the deal in the second quarter of 2021. The Supreme Court of British Columbia issued its approval of the statutory plan of arrangement under section 288 of the Business Corporations Act. This gives a green light to Apollo Global Management eyeing the acquisition.
The past weeks have been heated ones for the leading Canadian operator preparing for its purchase. The conditions of the definitive agreement have witnessed some tweaking over the second half of this month, in order to meet the expectations of both the shareholders associated with Great Canadian Gaming and the US-based Apollo Global Management.
Supreme Court of British Columbia
The Canadian gaming leader has witnessed an elaborate conversation regarding its proposed acquisition by Apollo Global Management. Mid-November, Canada’s 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.
The original definitive agreement came with the payment of CA$39 per every Great Canadian Gaming share. About a week ago, a hiked takeover bid was announced. Great Canadian Shareholders had expressed their discontent with the particular amount, considering it insufficient. The changed conditions of the definitive agreement brought CA$45 per share. Apollo Global Management decided to swell its takeover bid by 15 percent to some $2.52 billion.
The changed conditions appeared to be appealing to the large shareholders part of the Great Canadian Gaming Corporation structure. Soon after that shareholders had the chance to cast their vote on the subject and some 70 percent of them gave their nod to the changed conditions. Once this support was obtained, the casino operator had to receive the approval of the Supreme Court of British Columbia.
What’s to Come
This support was given this Wednesday, allowing the process to move forward in the next year. As a result of the approval, Raptor Acquisition Corp., an affiliate of funds will acquire issued and outstanding common shares associated with Great Canadian Gaming Corporation in their entirety. The affiliate of funds managed by affiliates of the New York-based private equity firm now has the permission to continue with the process.
Projections are that the second quarter of 2021 is about to see the closing of the deal and there are some changes that will take place then. Once the deal is closed, Great Canadian Gaming Corporation will delist its shares from the Toronto Stock Exchange. This acquisition will also mean that existing brick-and-mortar casinos and gambling halls will see new ownership in the first months of 2021.
There are ten properties located in British Columbia, where the casino operator is based. The largest one is River Rock Casino Resort in Richmond. The province of Ontario has 12 casino venues and gambling halls overseen by the casino leader. Atlantic Canada on the other hand has three hotspots managed by Great Canadian Gaming – two of them located in Nova Scotia and one in New Brunswick.