This Friday, Dreams and Enjoy, two Chilean casino operators, reached a merger agreement which will mean that, according to data provided by the Reuters agency, the business duo controls the 58% of the gaming industry in Chile in addition to a dozen operations in five other countries in the region. Enjoy will be the successor company and its shareholders will hold 36 percent of the shares of the merged companies, while the executives and shareholders of Dreams will hold the remaining 64 percent share.
But its properties will not be limited to gaming and betting establishments, the new combined entity will have hotels, event centers and restaurants in various cities throughout Chile as well as tourist destinations Argentina, Uruguay, Peru, Panama and Colombia.
“The new firm will combine all the experience of both groups and a financial strength that will allow it to robustly face the new challenges that the effects of the pandemic and the development of new technologies have imposed on the gaming and entertainment industry in Latin America,” He said Claudius Fisher, chairman of the board of Dreams.
For its part, Henry Comber, chairman of Enjoy’s board of directors said that “the merger of Dreams and Enjoy will consolidate the leadership of a Chilean company in the casino industry in Latin America.”
The merger of these two companies will reconfigure the casino scene in some of the most important cities in the region. Such is the case of mendoza, where Enjoy operated its casino in the Sheraton hotel, and Dreams did the same a few blocks away, in the Hyatt hotel. Finally, it was Enjoy who relented, and both companies will retain the Hyatt’s casino.
Julio Rodolfo Camsen, businessman dedicated to the hotel, financial and wine activity, and partner of the Sheraton hotel chain, according to information from the Newsonline media outlet, approached the new merged administration to buy the 53% of the Enjoy Casino for a sum of 450,000,000 Argentine pesos, a totally derisory sum within the category.
“Currently the Buyer owns the remaining 47% of the Company. Once the Transaction is perfected, the Company will no longer have any type of participation in the Company”, states a document drawn up in Santiago de Chile on December 31, 2021 detailing the conditions of the purchase.
In 2008, when the Sheraton de Mendoza hotel and casino opened, the project required an investment of more than USD 65 million and had about 40,000 square meters built, with a height equivalent to a 27-story building, according to the Chilean media DFMAS.
As it happened in Mendoza, it should not be surprising that more similar situations are happening in other parts of the region. The same Chilean media warns that a situation like the one in the Argentine city can happen between the Monticello casinos, belonging to Dreams, and Rinconada, owned by Enjoy. Both establishments would be very close to each other and their area of influence could lead the National Economic Prosecutor’s Office (FNE) of Chile forces the new merged company to sell one of these two gaming and betting establishments.
The merger is subject to the approval of the regulatory authorities in Chile and the other countries in which it will operate, as well as by the respective extraordinary shareholders’ meetings of both companies. The deal is expected to materialize over the next 9 to 12 months, the firms said.