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The US private equity firm that has offered to take over Great Canadian Gaming Corporation promises to expand the company and hire more Canadian staff in its casinos and circuits.
Apollo Global Management Inc. agreed to pay $ 39 per share in a $ 3.3 billion deal to acquire the game company, which operates 25 facilities across Canada and featured prominently in an investigation into money laundering course in British Columbia.
Great Canadian Gaming was hit hard by the pandemic, with its entertainment and hospitality facilities in BC, Ontario, New Brunswick and Nova Scotia forced to close.
He requested government assistance to make up for his losses and, by the end of June, had raised $ 5.9 million in relief funds, according to a management analysis by the company.
Apollo declined an interview but said in a statement that he plans to increase staff numbers and expand the company’s holdings.
“We seek to return to pre-COVID employment levels as soon as possible and expect Great Canadian employee headcount to increase under our ownership, with expected future growth,” an Apollo spokesperson told CBC on e-mail Wednesday. mail.
Rod Baker, the current CEO of Great Canadian Gaming, described the deal as very good for shareholders and said the board “unanimously concluded” that it is the best course of action for the company. .
But several minority shareholders have said they will reject the Apollo deal when it goes to a vote next month, saying the deal underestimates the company’s value.
Shares in the company were up more than 35% when the Toronto Stock Exchange opened Wednesday following the release of the company’s third-quarter financial report.
Cullen Commission investigation
Meanwhile, Great Canadian Gaming is at the center of the ongoing Cullen Commission’s investigation into money laundering in the Vancouver area. The company owns several gambling sites in British Columbia and the investigation has often focused on the activities of the River Rock Casino in Richmond, about 15km south of Vancouver.
The investigation, created to determine whether corruption allowed money laundering to take root in BC casinos, heard $ 100,000 transactions were common in Vancouver area casinos a decade ago.
He also heard testimonies that when BC Lottery Corporation investigators tried to ban VIPs from the Rock River who suspected of using loan sharks, casino operators and BCLC executives did not act.
Mark Skwarok, the attorney representing Great Canadian Gaming, said the company didn’t focus on profits.
If shareholders vote for the Apollo deal, the transaction is expected to be finalized by the second quarter of 2021. The company’s headquarters would remain in Toronto and be led by a Canadian management team.
Apollo is a global investment management firm with offices in cities around the world, including New York, Frankfurt and Hong Kong, with assets of nearly $ 433 billion.
The Canadian Revenue Agency responded to requests for information from the CBC on the $ 5.9 million assistance paid to the gaming company, explaining that they could not discuss individual cases for privacy reasons.
A media relations officer said in an email that in general the Canadian emergency wage subsidy “only applies to people working in Canada.” The CRA ensures compliance and, through audits, can recover wage subsidies if an overpayment is detected.
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