New Bid For Great Canadian Gaming Corporation

By Ben Hamill - September 08 2021

New Bid For Great Canadian Gaming Corporation

Rumors have been swirling for some time that the Great Canadian Gaming Corporation will be acquired. It was in November last year that the mega-corporation entered into discussions with Apollo Global Management, ultimately arriving at the sizable sum of CA$2.1 billion in Great Canadian Gaming stock. But this bid was not universally accepted, with a number of stakeholders declaring that the amount did not equate to a favorable deal. Apollo Global Management has now come back with a follow-up bid, this time putting forward the amount of $2.52 billion.

Among those that disagreed with the original bid are Burgundy Asset Management and Bloombergsen Investment Partners, both of which argued that the amount would have to be significantly higher in order to be fair. Now, with the second offer on the table, it remains to be seen what the overall reaction will be.

Either way, it seems all but inevitable that the Great Canadian Gaming Corporation will be acquired, one way or the other.

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Not In A Good Position

While some organisations called the bid too low, others have been quick to point out that the Great Canadian Gaming Corporation isn’t currently in the best position. With all land-based gambling venues in Canada having been closed for over a year, due to the world health crisis, plus mounting costs from new venues being constructed, it hasn’t been the best time for the local gambling industry.

With all of this taken into account, the original offer came to CA$39 per share. The new bid, however, adds 15%, coming in at CA$45 per share. This price hike seems to be a push by Apollo Global Management to put an end to the discussions, silence critics, and close the arrangement once and for all.

As it stands stakeholders that hold 50% of the company’s stock have already agreed, making it highly likely that the acquisition will now go ahead.

Curbing Worries

The final vote for the acquisition bid will be held on December 23rd. In the months leading up to the final vote all parties will be allowed to express their concerns, thus ensuring that any decision made is amicable.

Those that were concerned that Apollo Global Management was taking advantage, given the difficult environment caused by the world health crisis, will also have a chance to express those worries. Though, the higher bid will likely have elevated all naysayers.