Operator News
Chile – New details of Sun Dreams merger revealed
By Phil - 25 January 2022
Enjoy has presented the main components of the agreement with Sun. The agreement will now be analysed by the Superintendence of Gaming Casinos (SCJ) and the National Economic Prosecutor’s Office (FNE). In a presentation to shareholders, the firm highlighted that the merged company -which will be called “Dreams Enjoy SA,”- will consolidate itself as a leader in the casino industry in Latin America, with a presence in Chile, Uruguay, Peru, Argentina, Colombia and Panama.
“The merged company would reach comfortable levels of indebtedness and interest coverage for companies in the casino industry. Given the above, it is presumable that Enjoy’s bonds will be strengthened,” the company said. The document also emphasised that the merger “would allow the promotion of new lines of business such as online gaming and other initiatives in the entertainment sector, which will also benefit from the greater scale and geographical diversification.”
The company put an emphasis on online gaming stating that the coverage in different countries in the region and its specific knowledge of local markets where Enjoy and Dreams operate, “will allow the development of this business to be accelerated.”
In another document presented by Enjoy, in which it covers the objectives, benefits and conditions of the merger, the company stated that a proposal will be put forward to the company’s shareholders whereby the company’s capital will be by at least US$250 million. This would be “through the issuance of 93,223,481,738 new shares, which will be allocated exclusively to Dreams shareholders in the proportion that corresponds to them, in accordance with the agreed exchange ratio.”
Enjoy S.A and Dreams S.A – the two largest casino operators in Chile – recently announced that they had finalised their agreement to merge the two companies. The agreement is pending shareholder and regulatory approvals. Enjoy will be the legal surviving entity. Dreams’ shareholders will receive approximately 64 per cent of the merged company, while Enjoy’s shareholders will retain the remaining 36 per cent.
