The Latin American casino operating companies Dreams S.A. and Enjoy S.A. reached a merger agreement that is expected to take place during the course of next year, which will transform the new company into the largest gaming operator in the region.
According to the negotiation established between both parties, 64% of the new entity will correspond to those who have a shareholding in Dreams, while 36% will be for the holders of Enjoy shares.
The new firm will combine all the experience of both groups and financial strength that will allow it to confront with strength the new challenges that the effects of the pandemic and the development of new technologies have imposed on the gaming and entertainment industry in Latin America”, stated Claudio Fischer, president of the Board of Directors of Dreams S.A.
The merger will operate 15 of the 26 casinos in Chile, which is equivalent to 58% of the local industry. They also have 12 other operations in Argentina, Peru, Colombia, Uruguay, and Panama.
“The merger of Dreams and Enjoy will consolidate the leadership of a Chilean company in the casino industry in Latin America and will allow us to promote new lines of business and other initiatives in the entertainment sector, which will benefit from the greater scale and geographic diversity, and will undoubtedly provide a better value offer for our clients”, said Henry Comber, Chairman of Enjoy S.A.’s Board of Directors.
The boards of Enjoy and Dreams reached a final agreement to merge both casino operators, after carrying out reciprocal due diligence through their respective “clean teams”, thus fulfilling all the stages of the process that began on September 28, 2021, and which is expected to be completed within 9 to 12 months.
For the merger to be completed, it still needs to be approved by the Superintendency of Gambling Casinos of Chile (SCJ for its initials in Spanish), the Financial Market Commission (CMF), and the Chilean National Economic Prosecutor’s Office (FNE), as well as other governmental authorities of other countries in which operations are maintained. In addition, the initiative must be voted in favor by the shareholders’ extraordinary meetings of both companies.
Merger licenses
In Chile, it operates gaming casinos, hotels, event centers and restaurants in the municipalities of Iquique, Antofagasta, Coquimbo, San Antonio, Rinconada de los Andes, Viña del Mar, Mostazal, Los Ángeles, Temuco, Pucón, Valdivia, Puerto Varas, Castro, Coyhaique and Punta Arenas.
In Peru, it has eight casinos and associated assets in Lima, Tacna, and Cusco, in addition to the online gaming operation Solbet.pe.
In Colombia, it has three gaming establishments, two in Bogota and one in Cartagena.
In Argentina, it will operate the Park Hyatt Mendoza Hotel and its gaming casino, and in Uruguay the Enjoy Punta del Este Casino & Resort, while in the capital city of Panama it manages the Ocean Casino in Punta Pacifica.
Original article: https://www.yogonet.com/international/news/2022/01/14/60957-dreams-and-enjoy-announce-merger-to-become-largest-regional-operator-in-chile
