Spanish gaming company Codere SA is may sell 50 percent of its Uruguay casinos to South American operator Sun Dreams, according to reports out of Spain. Talk of the deal comes after the Bolsa Madrid-listed firm issued a profit warning due to the devaluation of the Argentine peso, a dip that followed primary elections in August.
The sale could raise more than US$163 million for Codere, reports SBC News, citing sources quoted by El Confidencial and other Spanish outlets. They report that Codere has already received a first, non-binding offer from Sun Dreams, which is willing to pay around eight times the gross operating profit of Codere’s Uruguayan subsidiary.
Responding to the reports, Codere said that opportunities for business development in Uruguay “are being analyzed” but said the deal is not final. But the sources suggest such an offer to be attractive, and likely to be accepted by Codere’s board when made firm.
Codere’s Uruguayan business reported operating profits of US$22 million in 2018. The Spanish group operates 2,252 gaming terminals in the country, in addition to 26 betting venues and two racetracks.
The deal could close within weeks, reported SBC.
