Apollo’s increased bid reflects Great Canadian Gaming Corporation’s trading levels in February before the pandemic hit.
Canada.- Apollo has raised its offer for Great Canadian Gaming Corporation, winning over top shareholders who were previously opposed to the deal.
It raised its offer by 15 per cent, from $39 per share to $45 per share, reflecting roughly where Great Canadian stood on the stock market in mid-February before the pandemic hit.
The total equity value of the proposal is around $2.5bn based on a total of 56 million shares outstanding.
The higher offer has boosted support for the deal to around 50 per cent of Great Canadian’s shareholders. Apollo has now gained the support of BloombergSen, Burgundy Asset Management Ltd, and CI Global Asset Management, all of which said they would not have voted in favour of the previous offer.
Great Canadian Gaming’s chairman, Peter Meredith, said in a statement: “Great Canadian’s Board of Directors, based on a recommendation from the Special Committee of independent directors, unanimously recommends shareholders vote in favour of the transaction.
“The increased purchase price of $45 per share unlocks greater value for shareholders, and the company and board appreciate the support of some of Great Canadian’s largest institutional shareholders for this transaction.”
Meanwhile, UK-based LeoVegas announced last week it plans to launch its female-targeted brand, Pink Casino, in Canada.