Apollo Global Management (APO) will be purchasing Great Canadian Gaming Corp (GC) in a deal worth C$2.16 billion ($1.66 billion). Apollo says it will use cash managed by its affiliates to finance the deal.
Apollo is offering C$39 per share which represents a 34.9% share premium of the stock’s closing price on November 10. The deal gives the company market valuation of over C$3.3 billion.
Great Canadian Gaming was established in 1982, the company runs 25 gaming, hospitality and entertainment facilities in New Brunswick, Nova Scotia, Ontario and British Columbia.
The company said this deal has received a strong approval from its board and that it looks forward to close the deal in the second quarter of 2021.
In the deal, Great Canadian has secured Scotiabank to serve as the lead financial adviser while CIBC World Markets Inc. will be the financial advisor to its special committee.
On the other side, Macquarie Capital is the lead financial advisor for Apollo Global Management.