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Grupo Codere has commenced the sale process, which may value the company at more than €2 billion. The company has appointed Jefferies and Macquarie Capital as financial advisors to manage the sale process, as per information provided by the Spanish newspaper Expansión.
The sale process is in the early stages, and the timeline has already begun to take shape. Indicative offers are likely to be submitted by mid-May, followed by binding bids in early July, with the deal likely to be closed before the summer break in August.
Ownership Structure and Shareholder Landscape
Grupo Codere is currently owned by about 84 investment funds, as per the debt-for-equity swap that occurred in 2024, giving the investment funds control of the company, as opposed to the company’s founder, the Martínez Sampedro family.
Among the shareholders, Davidson Kempner owns the largest stake of 13.3%, followed by Palmerston Capital, Deltroit, System 2 Capital, and Invesco.
Global Operations and Market Presence
Grupo Codere was founded in 1980 and has established itself as a diversified operator in the global gaming industry, with operations in different regulated markets, including Spain, Italy, Argentina, Mexico, Panama, Colombia, and Uruguay.
It has both online and offline presence, which makes it a diversified player in the gaming industry.
It has also established its online presence through the formation of Codere Online, which is the digital division of the company and is listed on the Nasdaq stock exchange.
The deal is expected to draw interest from industrial players as well as financial investors. However, certain private equity players may also face constraints due to Environmental, Social, and Governance (ESG) considerations, which may affect investments in the gambling business.
Financial Recovery and Performance
The proposed deal comes at a time when the company, Codere, entered a significant agreement with creditors in the past two years, where approximately €1.2 billion in debt was exchanged for equity. This deal significantly improved the financials of the firm after over a decade of financial restructuring.
As a result of this agreement, the firm was able to decrease its gross debt from €1.4 billion to approximately €190 million, in addition to gaining approximately €60 million in new liquidity. This financial stability has also played a significant role in the firm’s ability to explore strategic opportunities, which include the proposed deal.
Operationally, the firm has also demonstrated positive growth under the leadership of CEO Gonzaga Higuero, with the firm registering revenues of €1.346 billion in 2024, indicating a steady performance in its core markets.
Transaction Timeline and Outlook
The proposed deal timeline indicates that the process will commence in the coming weeks, with parties expected to present non-binding offers by mid-May, followed by a second phase leading to binding offers in early July.
If the process goes as expected, the firm, Codere, hopes to complete the deal before the summer holiday period in August.
Strategic Implications
The possible sale of Grupo Codere is a major event in the global gaming industry. The company has a restructured balance sheet, diversified business, and improved financial performance, making it an attractive business opportunity for both financial and strategic investors.
The success of the process will depend on market conditions and the ability to overcome any ESG-related hurdles. Nonetheless, it marks a new era for Codere as it embarks on a journey to redefine its ownership and future strategic direction.
Source: SBC Noticias
