RE:RE:RE:RE:RE:RE:GCG now operated and owned by Americans...Even before the pandemic, Casino Rama, a flagship resort casino ...one of the first....was hurting badly with declining attendance, a much smaller games room, lots of vacancy in their hotel...not to say all Ontario casinos are hurting..but there has been a lot of sectoral expansion so that a "destination casino" is less of a need or attraction. It is operated by Gateway
malx1 wrote: BarstoolSage wrote: Appolo (GCG) and Catalyst Capital (Gateway Casinos) are both owners that have exit plans. Private equity capital makes the company better and more valuable then spins it out...to some other owner or goes for another staged IPO
Gateway went private in 2010 ...and Catalyst has been looking to unload some or all of it since 2012 ...last year a sale for 1.5 BB fell through...pandemic related
Glad we have inside ownerhip and seasoned operators.
Now there will come a day when succession planning becomes more important....
cpeczek wrote:
Here is hoping they shape up GC then spin it off down the line.
The executives at Catalyst are too greedy to get a deal done. Proposed valuations for the IPO are outlandish and have been too high for almost 10yrs now. Last I checked (2018) they owed about 1,000mm vs assets of about $1,000mm.
Post pandemic, their balance sheet will be ugly.
The takeover of Gateway Casinos turned into a white elephant. They know it, that's why the private investors want out.
Some quality properties in their portfolio but plenty of cockroaches lurking under the floorboards. Some of the pests wear suits and ties, pretending to be management. Beware!!