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Canada: Gateway Casinos to gain public listing via merger

By  |  January 1, 2020

Canadian gaming and entertainment operator Gateway Casinos & Entertainment announced it would merge with a publicly traded shell company in a deal with an enterprise value of US$1.12 billion. 

Leisure Acquisition, a special purpose acquisition vehicle, will merge with Gateway and become a new subsidiary of Gateway’s holding company GTWY Holdings Ltd, the companies said in a statement. 

The complex transaction will allow Gateway to go public while sidestepping the traditional initial public offering process. 

The casino operator had initially filed paperwork for a US initial public offering in November 2018, but pulled its long-delayed IPO plans early Friday, December 27, according to a regulatory filing.

The company has over two dozen gaming properties in British Columbia, Ontario, and Edmonton. 

Through the deal, Gateway will be able to avoid struggling to sell shares to investors in an uncertain IPO climate.

Full Content: Reuters

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