World News – CA – Apollo Increases Offer for Great Canadian Gaming, Support from Opposing Shareholders

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Apollo Global Management Inc. . has won major shareholders in Great Canadian Gaming Corp.. by increasing the friendly takeover offer by 15. 4 percent to $ 2. 48 billion, weeks of complaints from investors that the original offer failed to take into account the company’s prospects after the pandemic.

Apollo of New York said its sweetened offering for Great Canadian won shareholder support with 50 percent of the stock. The previous offer for the operator of casinos in British Columbia, Ontario and Atlantic Canada was valued at $ 2. 1 billion.

The higher bid comes from questions about the financial health of the company, whose facilities have been closed since March when governments placed restrictions on large gatherings to combat the spread of COVID-19. Even so, some major shareholders said the previous offer was an attempt to get Great Canadian cheaply private before the public health contracts are lifted.

Apollo is now offering $ 45 per share on Great Canadian, down from $ 39. Investors are expected to vote on the offer on Wednesday. Great Canadian shares rose more than 17 percent to $ 43. 65 on the Toronto Stock Exchange on Monday.

« We are grateful for the strong support of the shareholders in favor of the transaction, » said Apollo partner Alex van Hoek in a statement. “With Apollo’s extensive gaming experience, we see a significant opportunity for Great Canadian to grow its business and provide guests with an enhanced experience as a privately owned company with a longer term view of success. ”

Great Canadian’s board of directors has approved the higher bid coming five days after major shareholder CI Global Asset Management announced that it would, along with several other investors, reject the original offer – essentially making it dead. CI, together with BloombergSen, Burgundy Asset Management Ltd. . , Madison Avenue Partners LP and others will support the new offering, Apollo said.

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Great Canadian Gaming Corporation, Apollo Global Management, TSX