Canada’s Gateway Casinos is reportedly considering a cut-rate sale and is seeking a $2 one thousand million cost tag, including debt.
Bloomberg broke the story before Monday. The news emerged almost ii months after the cassino operator announced the passing of Chief Executive Officer Tony Santo. Citing unidentified sources faithful to the matter, Bloomberg reported that Gateway hired Macquarie Group and Henry Morgan Stanley to conduct a hunting for possible buyers or investors.
Gateway Casinos & Entertainment Limited is ace of the largest and to the highest degree diversified gaming and amusement companies inwards Canada with 31 gaming properties in Brits Columbia, Ontario and Alberta,” according to the operator’s website.
Two of the operator’s venues are situated in Alberta with the remaining properties situated inwards British Colombia and Ontario. The gaming society is legal age owned past the Catalyst Capital Group, a common soldier equity loyal with more than $6 billion in assets under management. Catalyst took hold in of the gaming keep company in 2010.
Exploring Potential Suitors for Gateway Casinos
Gateway itself was reinforced on acquisitions. Assuming Catalyst Capital Group is exercise set on $2 1000000000000 or a figure inwards that neighborhood, plentifulness of suitors could emerge, though some US-based cassino operators are trimming Canada exposure.
On that note, Caesars Entertainment (NASDAQ: CZR) and Century Casinos (NASDAQ: CNTY) in all probability aren’t potential suitors for Gateway. Other US-based regional casino operators and perhaps common soldier equity firms could assure note value in Gateway. Nearly trinity years removed from its acquisition of Great Canadian River Gaming Corp. (GCGC), Apollo Global Management (NYSE:APO) mightiness non want to expand its step northward of the border.
Gateway could live an attractive target for a emptor that sees time value inward the company’s tangible acres and perhaps opportunity to draw out value from the operator’s current portfolio by potentially shedding a locus or two.
Would-be buyers would also want to be bullish on the future tense of the Canadian gaming market. The country is place to simply 38.25 trillion people, or to a lesser extent than California’s population.
Gateway Casinos Attempted to Go Public
As it is currently structured, Gateway Casinos is a in private held company, but it wasn’t supposed to live that way. In December 2019, hedging fund HG Vora, which has a long story of gaming investments, attempted to partner with Catalyst Washington and blank-check stiff Leisure Acquisition Corp. to convey Gateway public at a $1.15 1000000000000 valuation.
Following delays, the business deal drop apart inwards June 2020. At that time, no ground was given for the prostration of the transaction. It’s not unmortgaged if Catalyst Capital would deal another setback merger with a special purpose acquisition companion (SPAC) as an boulevard for monetizing its post in Gateway Casinos.
“Gateway currently employs approximately 7,200 people and features just about 391 tabular array games (including 31 fire hook tables), 14,288 slots, 81 solid food and drinkable outlets and 564 hotel rooms,” according to the operator.
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