Shareholders of Apollo Global Management Inc. recently voted to approve purchasing Great Canadian Gaming Corp. for $1.96 billion. Earlier the deal had faced intense opposition before Apollo, a private equity firm, raised its bid by 15 percent, from of $39 per share to $45 per share. That assured approval from investors including CI Global Asset Management, BloombergSen Inc. and Burgundy Asset Management Ltd. Two-thirds approval of shareholders was necessary for the deal to take effect and 79 percent actually voted to move forward with the acquisition, which is expected to close in second quarter pending regulatory approval.
In a statement, CI Global Portfolio Manager Stephen Groff said the asset management firm considered various scenarios of Great Canadian’s cash-flow generating capability in a “more normal environment” and were satisfied with the results.
Apollo officials said the company was committed to maintaining Great Canadian’s current operations and even plans to expand. Currently Great Canadian operates 26 gaming, entertainment and hospitality facilities across Canada. New York-based Apollo said it will drive growth with increased non-gaming facilities, improved loyalty and marketing programs and enhanced gaming operations.
Great Canadian posted net losses of $67.9 million in the two most recent quarters, primarily due to the Covid-19 pandemic, although its operations have continued to generate cash.
