Burgundy rejects Apollo bid for GCGC

Apollo valued GCGC at C$39 a share.
Apollo valued GCGC at C$39 a share.

Great Canadian Gaming Corporation’s third-largest shareholder is not satisfied with the offer.

Canada.- Burgundy Asset Management has said it will not vote in favour of Apollo Global Management’s CA$3.3bn offer for Great Canadian Gaming Corporation (GCGC).

Burgundy disclosed in a letter that it was not satisfied with Apollo’s valuation off C$39 per share, arguing that the pandemic had allowed Apollo to “opportunistically approach the company with an underwhelming, unsolicited bid.”

Burgundy managers, David Vanderwood and Andrew Iu, wrote: “We believe Great Canadian’s Ontario assets are irreplaceable properties for which Apollo’s C$39 offer reflects only a fraction of their potential value.”

Apollo’s price offering represented a 35 per cent premium on the stock’s closing price on November 10, the day the deal was proposed.

According to representatives at Apollo, share offer “delivers significant and immediate value to the shareholders of Great Canadian, despite the material impacts Covid-19 has had on the business for a prolonged period of time.”