Great Canadian Gaming documents 15.4% amended purchase price

River Rock Great Canadian

Great Canadian Gaming has documented that the group has entered into an amended arrangement regarding an impending buyout by funds managed by affiliates of Apollo Global Management.

Under the revision, Apollo Funds will acquire all the outstanding Great Canadian common shares for C$45 per share in cash, representing an approximate 15.4 per cent increase from the original purchase price of C$39 per share.

Shareholders holding approximately 50 per cent of Great Canadian’s outstanding common shares have entered into voting support agreements, pursuant to which they have committed to vote in favour of the transaction at the aforementioned amended purchase price.

“Great Canadian’s board of directors, based on a recommendation from the special committee of independent directors, unanimously recommends shareholders vote in favour of the transaction,” stated Peter Meredith, chairman of the board of Great Canadian.

“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.”

The previously announced special meeting of shareholders and option holders of Great Canadian to consider the transaction will be held virtually as originally scheduled on Wednesday, December 23, 2020.  The company has extended the voting deadline for receipt of proxies and voting instructions until the start of the special meeting.

Alex van Hoek, partner at Apollo, commented: “We are grateful for the strong shareholder support received in favour of the transaction. 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.”  

Following the close of the transaction, Great Canadian will remain headquartered in Toronto, led by a Canadian management team and with Canadian board members. Upon completion, Apollo also anticipates that certain Canadian institutions may co-invest in the transaction to become equity owners in the company.