Apollo ups Great Canadian Gaming offer by 15% amid shareholder speculation

Apollo Global Management has increased its offer for Great Canadian Gaming Corporation (GCGC) by 15.4% after major shareholders in the firm threatened to torpedo its £1.9bn takeover bid. The US-based asset management firm originally offered to purchase outstanding common shares in the business at C$39 (£23) per share, but it has since increased that offer to C$45 per share, with the acquisition cost to be paid in cash. GCGC has confirmed that 50% of common stock shareholders have given their ascent to the revised offer, with the firm’s board of directors committed to approving the deal. The revised offer comes after major shareholders BloombergSen Inc, which is not affiliated with the major financial publishing house, and Burgundy Asset Management Limited, publicly opposed the initial bid. The investors said the offer undervalued the business and that the lower purchase price aimed to take advantage of lower share prices due to the impact of the coronavirus pandemic. However, GCGC has revealed that BloombergSen Inc and Burgundy Asset Management are included in the 50% of shareholders now backing the deal, which will be put to a final shareholder vote on 23 December. “The increased purchase price of C$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,” GCGC chairman Peter Meredith said. Apollo has confirmed that GCGC’s current management team will remain in place following the acquisition. It has expressed its aim of driving “additional incremental growth” by expanding GCGC’s non-gaming facilities and expanding its loyalty and marketing programmes. In addition, Apollo revealed its intention to make “gaming improvements that leverage the scale of the firm’s platform”, citing the potential for other Canada-based funds to invest in the business. “We are grateful for the strong shareholder support received in favour of the transaction,” Apollo Global Management partner Alex van Hoek said. “Based on Apollo’s considerable experience in the gaming space, we see significant opportunity for Great Canadian to grow the business and bring an enhanced experience to guests as a privately held company with a longer-term view of success. “As sponsors, we’re committed to providing Great Canadian with the financial and strategic flexibility to successfully manage Covid-19 challenges and accelerate future growth and innovation as the market leader in Canada,” van Hoek added.