RICHMOND (NEWS 1130) – Great Canadian Gaming has agreed to be bought by U.S. private equity firm Apollo Global Management.
The price is $3.3 billion or $39 a share, a 35 per cent premium to Tuesday’s closing price but well below the $48.50 it touched in February before the pandemic.
Fold 'em: Great Canadian Gaming agrees to be bought by US private equity giant Apollo Global Management for $3.3 billion. Apollo says “certain Canadian institutions” might join the deal. Price is $39/share, a 35% premium to Tue but well below the $45.80 GC touched in February. pic.twitter.com/Vw53AhLp5y
— Richard Dettman (@rwdettman) November 11, 2020
Great Canadian Gaming shares closed at $28.91 on the Toronto Stock Exchange on Tuesday.
Richmond-based Great Canadian operates 25 casinos, racetracks and associated entertainment and hospitality facilities in B.C., Ontario, New Brunswick and Nova Scotia.
The Great Canadian board has unanimously recommended that shareholders vote in favour of the transaction at a meeting that is expected to be held in December.
Once the deal closes, Great Canadian is expected to remain headquartered in Canada and led by a Canadian management team.
Apollo also anticipates that Canadian institutional investors may buy into the deal alongside the Apollo Funds once it is complete.
Richard Dettman will have more in Business at :26 and :56.