LatAm casino operator Enjoy’s main creditors and future shareholders have reached an agreement to merge with casino operator Sun Dreams, according to a document sent to Chile’s local markets regulator, Bloomberg reports.
The news agency said neither Enjoy’s board nor its administration knew of the proposal beforehand, and there is still no information to estimate the impact of such operation, in the event that it materializes.
Enjoy released a reserved essential fact that was sent a few days ago to the Commission for the Financial Market (CMF) in which indicated the firm’s creditors informed the board that they had reached an agreement with the operator Sun Dreams for a merger.
“We bear in mind that neither Enjoy’s board of directors nor its administration knew about this background nor do they have more information,” said Rodrigo Larraín, general manager of the company, as reported by Memesita.
“On the afternoon of Friday, February 19, 2021, the president of the company, Mr. Javier Martínez, received a call from Mr. Henry Comber, a member of the Creditors Commission of Enjoy SA, who informed him that the Enjoy’s main creditors and future shareholders have reached an agreement with the casino operator group Sun Dreams to merge it with Enjoy SA and that there was already an investment bank hired and advising them in this operation," the communication reads.
In this regard, the company linked to the Martínez family and the Advent fund said that neither the board of Enjoy not even his administration knew about this background, nor do they have more information than that provided by Comber to the president of the company. Therefore, it added, “as of this date it is not possible to determine the probability or the impacts of a possible execution of the aforementioned operation.”
“In the event that the company has new information regarding the aforementioned operation, it will be duly informed to the market,” added the essential fact signed by Larraín.
In 2019, Enjoy had a market share of 37.6% in Chile, compared to 38.8% of its main rival, and now a possible new partner, Sun Dreams, according to the country's gaming regulator, SCJ. So a potential merger would see the combined company control over 76% of the casino market share.