M&A

Date: 29.09.2023

by Mateusz Mazur

Last update: 25.11.2023 10:48

M&A Speculation Grows in Chile as Logrand Entertainment Considers Acquisition of Enjoy SA

Reports emerging from Chile suggest that Logrand Entertainment, a Mexican gambling group, is contemplating the acquisition of Enjoy SA, a prominent casino group in Chile.

 

This development comes in the wake of Enjoy’s unsuccessful merger attempt with its main market rival, Grupo Dreams SA.

Dominant conglomerate

The proposed merger between Enjoy and Dreams in Chile has been intervened by the Chilean Competition Authority (FNE). The merger would have given rise to a dominant gambling conglomerate with over 75% market share and control of approximately 60% of land-based permits. Although the government approved the merger, the FNE found that it did not meet its antitrust criteria due to concerns of collusion among the dealmakers.

The discussions regarding the merger came to an abrupt halt because of accusations of market manipulation and investor fraud against Dreams CEO Jaime Wilhelm. However, Logrand Entertainment has emerged as a potential buyer to resolve the M&A deadlock and acquire a 40% stake in Chile’s casino market at a lower price.

Restructuring efforts

The sale of Enjoy has received support from the main creditors, Euroamerica (15%) and Penta Vida (12%), who provided funding for the casino group’s recent restructuring efforts and financial stability during the COVID-19 pandemic. While Enjoy had previously expressed its intention to sell its business units in Uruguay, Logrand is mainly interested in the Chilean market, except for the traditional Punta del Este casino.

Logrand, a company that manages 14 casinos across Cancun, Guadalajara, and Monterrey provinces, is looking to expand its presence in South America, beyond Mexico. This strategic move aims to position Logrand as a contender in the region, alongside competitors such as Grupo Caliente MX and Big Bola Casinos.

 

 

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