In Latin America and the long-awaited merger of gambling preeminent Enjoy SA with larger compatriot Sun Dreams SA has reportedly been agreed after almost a year of talks in order to create an entity that is to be responsible for a portfolio of some 25 casinos.
According to a source citing official information from the Financial Market Commission in Chile, the union is now expected to be completed by the end of the year with shareholders in Dreams SA controlling approximately 64% of the enlarged operator’s fresh stock.
Established in 2015 via a partnership between South African hospitality giant Sun International Limited and South American counterpart Dreams SA, Santiago-headquartered Sun Dreams SA is currently responsible for seven casinos in Chile to give it a local market share of about 38%. The operator, which also runs properties in Peru, Colombia, Argentina and Panama, purportedly generated around $79 million in earnings before interest tax, depreciation and amortization for 2019 although holding debts worth in the region of $228 million.
For its part and Enjoy SA, reportedly controls 37.6% of the casino market in its home nation of Chile courtesy of venues in the cities of Antofagasta, Coquimbo, Vina Del Mar, Rinconada, Santa Cruz and Pucon. Despite this laudable position, the operator was nevertheless severely impacted by the coronavirus pandemic and saw it annual debt for the 2020 grow by over 22% year-on-year to stand at about $546 million.
Henry Comber serves as the President for Enjoy SA and he reportedly declared that the coming merger will look to consolidate ‘the leadership of a Chilean company in the Latin American casino industry’ that could soon look to enter the world of online gaming.
Reportedly read a statement from Comber…
“These businesses will benefit from a greater scale and geographic diversification, which will undoubtedly allow us to deliver a better offer to our clients.”
For his part and the President for Sun Dreams SA, Claudio Fischer, reportedly pronounced that the coming merger still needs to be approved by Chile’s Superintendency of Gambling Casinos, Financial Market Commission and National Economic Prosecutor’s Office in addition to regulatory bodies in every other nation in which it is to operate. Nonetheless, he purportedly furthermore disclosed that the enlarged entity is to control a dominant 58% of the casino market in South America’s richest nation and be better able to overcome the economic malaise that was caused by the coronavirus pandemic.
Fischer’s statement reportedly read…
“The new company will combine all the experience of both groups and provide a financial strength that will allow the business to face the new challenges that the effects of the pandemic and the development of new technologies have imposed on the Latin American gaming and entertainment industries.”