Latin American casino group Enjoy has reached an agreement to merge its gaming and hotel business with that of rival casino operator Sun Dreams, according to Bloomberg Law, who says it has seen documents from Enjoy’s main creditors and shareholders.
Enjoy sent documents relating to the potential merger to the Commission for the Financial Market (CMF).
It stated: “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 We bear in mind that neither Enjoy’s board of directors nor its administration knew about this background nor do they have more information.”
“As of this date it is not possible to determine the probability or the impacts of a possible execution of the aforementioned operation,” it added.
Enjoy operates casinos in the Chilean cities of Antofagasta, Coquimbo, Vina del Mar, Rinconada, Santa Cruz, Pucon and a casino in the Argentinian city of Mendoza, equating to 37.6 per cent of the market. Sun Dreams is currently the largest casino operator in Latin America. In Chile, it operates casinos in Iquique, San Francisco de Mostazal, Temuco, Valdivia, Coyhaique and Punta Arenas; plus eight casinos in the city of Lima, Peru; two operations in Cartagena de Indias in Colombia; two operations in Panama City, Panama and one casino in Mendoza, Argentina. It has a 38.8 per cent share of the Chilean market. A potential merger would see the combined company control over 76 per cent of the casino market share.