- Great Canadian Gaming (CT) is being bought out by U.S. investment giant Apollo Global Management in an all-share offer valued at more than C$3.3 billion
- The deal values each CT share at $39 each and represents a 59 per cent premium on Great Canadian Gaming’s recent trading average
- The news has pulled Great Canadian Gaming shares out of a sustained depression, which was triggered by the impact of COVID-19 restriction on the gambling sector
- The offer has received unanimous support from the company’s board and is expected to finalise in the second quarter of 2021
- Great Canadian Gaming is currently up 34.94 per cent to trade for $39.00 per share
Great Canadian Gaming (CT) is being bought out by U.S. investment giant Apollo Global Management in a deal valued at C$3.3 billion.
The all-share offer values each CT share at C$39 a pop and represents a whopping 59 per cent premium on Great Canadian Gaming’s recent trading average.
The deal has finally dragged Great Canadian Gaming’s share price back from the doldrums, where it’s been labouring since the pandemic triggered an industry wide downturn.
Consequently, Apollo’s offer has received unanimous support from Great Canadian Gaming’s board of directors.
Among those in favour of the deal is Great Canadian Gaming CEO Rod Baker, who called the acquisition a “great opportunity for our shareholders”.
“We believe this transaction is beneficial for our shareholders, our team members, our guests, and other stakeholders as we continue to execute on our operational and development plans into 2021 and beyond, while we navigate through this volatile time,” he said.
Nevertheless, news of the deal hasn’t helped Apollo’s NYSE-listed stocks, which opened more than two per cent down when trading started up this morning.
Once the deal finalises Great Canadian Gaming will remain headquartered in Toronto and expects to increase its gambling properties under the new owners.
The handover is anticipated in the second quarter of 2021.
The news sparked a buy-up of Great Canadian Gaming shares this morning, which rose 34.94 per cent to now be valued at $39.00 per share at 11:36am EST.