Acquisition of Great Canadian Gaming Going Ahead
After an extended series of negotiations, shareholders in Great Canadian Gaming came to an agreement with Apollo Global Management regarding share prices. The former’s acquisition is now set to go ahead, officially closing in the second quarter of 2021. This is due to the British Columbia Supreme Court giving the necessary plan of arrangement the green light.
The BC Supreme Court approved the statutory plan of arrangement under the Business Corporations Act 288. This means that Apollo Global Management, who wants to acquire Great Canadian Gaming Corporation, can start moving forward. This scheme has undergone significant changes over the last weeks of 2020. Tweaks were necessary to suit the requirements of both Apollo Global Management, the US-based global investment management firm, and the shareholders of Great Canadian Gaming.
Falling At The First Hurdle
The leading Canadian entertainment, gaming, and hospitality company wants to be acquired by Apollo Global Management as part of its efforts to improve its overall potential. The first draft of the current agreement offered investors CA$39 per share in the business, but stockholders felt this was insufficient and rejected the offer. The conditions were then altered, with prices going up to CA$45 per share, and the takeover bid increasing by 15% to CA$2.52 billion.
The majority of Great Canadian Gaming shareholders were happy with this hike. Voting on the matter revealed that roughly 70% of the investors approved. As soon as this matter had been sorted out, the company was able to move on to the Supreme Court part of the process. The firm submitted the necessary outline and received the nod in the first week of the new year.
Major Changes On The Cards
Once the deal goes through, Great Canadian Gaming will start delisting its shares from the Toronto Stock Exchange. The takeover will also see that current land-based casinos and gambling venues will start operating under new ownership in the first part of 2021.
There are 10 properties in the province of British Columbia, where Great Canadian Gaming is headquartered. The biggest is Richmond’s River Rock Casino, the only AAA Four Diamond Casino Resort in Canada. Ontario has 10 casinos and gambling halls, notably Casino Ajaz, Casino Woodbine, and the Great Blue Heron Casino. And there are three locations managed by the firm in Atlantic Canada. Two are in Nova Scotia and New Brunswick has one venue. All of these locations will be undergoing major changes this year.