Minority Investors Rush to Reject Great Canadian Gaming’s Offer to Sell to Apollo – Business News

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Great Canadian Gaming Corp.’s deal to be acquired for $ 3.3 billion by a US private equity firm was quickly rejected Wednesday by some of the casino operator’s minority shareholders.

Apollo Global Management Inc. has agreed to pay $ 39 per share for the company, a price that Great Canadian’s CEO says is very good for shareholders.

But Bloombergsen Investment Partners, a Toronto-based investment firm that owns about 14% of Great Canadian’s equity, told an investor that the Apollo deal doesn’t come close to the stock’s true long-term value.

Representatives of fellow minority shareholders Madison Avenue Partners and investors from Breach Inlet Capital said they will also be voting against the Apollo deal, which is subject to various shareholder and regulatory approvals.

Among other things, investors said Great Canadian should have been looking for alternatives to the Apollo offering, which was announced late Tuesday before the company’s third-quarter financial report released Wednesday.

Great Canadian Gaming stock was up more than 35% when the Toronto Stock Exchange opened, earning $ 10.11 to trade at $ 39.02 in early trades.

The company operates 25 gaming, entertainment and hospitality facilities in Ontario, British Columbia, New Brunswick and Nova Scotia.

Great Canadian says its board unanimously recommended that shareholders vote in favor of the transaction at a meeting expected to be held in December.

Once the deal is concluded, Great Canadian is expected to remain headquartered in Toronto, led by a Canadian management team.