North American casino operator Great Canadian Gaming Corporation is reportedly set to be acquired by New York-listed Apollo Global Management Incorporated in a deal worth approximately $2.5 billion.
According to a Wednesday report from the Bloomberg news service, the private alternative investments management firm has agreed to pay around $0.29 for every share in the Vancouver-headquarter casino operator and eventually take over the running of its 25 currently-closed facilities located across the Canadian provinces of Ontario, Nova Scotia, British Columbia and New Brunswick.
Established in 1982, Great Canadian Gaming Corporation has recently reportedly been struggling to come to terms with the economic fallout associated with the coronavirus pandemic after last year being hit by a 12% decline in table drop at its nine facilities in British Columbia owing to a new raft of local anti-money laundering rules.
Rod Baker serves as Chief Executive Officer for Apollo Global Management Incorporated and he reportedly detailed that his enterprise already holds significant stakes in other gambling-friendly firms including Italian sportsbetting operator Gamenet Group SpA and recently agreed to invest some $591 million in European lottery firm Sazka Group AS. He purportedly moreover declared that ‘certain Canadian institutions’ might be cooperating in the buyout of Great Canadian Gaming Corporation with the country’s largest investments concern, Canada Pension Plan Investment Board, already serving as a limited partner in his firm’s managed funds.
Read a statement from Baker…
“We believe that our extensive experience in the gaming sector will provide additional strategic benefits to help expand our gaming and hospitality offerings and to secure our position as a long-term market leader.”
Alex Van Hoek is a partner at New York-headquartered Apollo Global Management Incorporated and he reportedly told the news service that his firm recognizes the challenges the Canadian casino industry is facing but is ‘committed to working with the management team, regulators and health authorities’ so as to re-open Great Canadian Gaming Corporation’s venues ‘as soon as it’s safe to do so.’