Apollo Global Management, a powerful private equity firm, made an improved offer for Great Canadian Gaming Corporation, to persuade the shareholders to accept the takeover bid.
Last month, the firm made an offer worth just over 2.5 billion United States dollars for the Canadian land-based casino operator, but it seems the shareholders were not impressed by the price.
The proposed deal was supposed to have Apollo purchase all outstanding shares issued by Great Canadian Gaming at a price of 39 Canadian dollars per share. The buyer also stated that it would not move Great Canadian’s headquarters from Toronto, and also insisted that the management team would remain Canadian, as well as the majority of the board members.
Great Canadian Gaming’s board had accepted the offer in November, stating that Apollo’s “extensive experience in the gaming sector will provide additional strategic benefits to help expand our gaming and hospitality offerings and to secure our position as a long-term market leader.”
But the shareholders were more interested in the price per share than the capabilities of the investor. According to Bloomberg, Apollo made a fresh offer of 45 Canadian dollars per share, which is the trade value of Great Canadian shares in February, when the coronavirus pandemic started affecting the business.
The new offer is likely to secure the approval of the majority of the shareholders, and that will put the multi-billion takeover bid across the line.