The move is part of the company’s strategy of continuing to strengthen its financial position. Enjoy’s finance manager, Esteban Rigo-Righi welcomed the news saying that it was “very positive for Enjoy” as it fits in with the operator’s expansion plans in Chile now that its licences have been renewed. He added that it also “allows us to finance the projects Enjoy has planned for the coming years and move forward with our plans to reduce financial costs.”
The company will make a number of investments in Chile. In June, the Deciding Council of the Chilean Gaming Board (SJC) awarded five municipal casino licences with Enjoy scooping four licences and Sun Dreams the other.
In August 2017, US based private equity firm Advent International announced that it had signed an agreement with Enjoy. Under the terms of the new agreement, Enjoy will remain publicly traded while the founding family of Enjoy the Martinez family will retain a substantial equity ownership position in the company.
The capital increase will strengthen Enjoy’s capital structure, allowing for lower financial expenses, and enhanced investment capacity, including the renewal of its Municipal Licenses. Chile’s antitrust regulator approved the move in October.
In January 2018 it was reported that Advent has purchased 32% of Enjoy for approximately US$120m. Advent has announced plans to invest as much as US$118m in the casinos in Coquimbo, Viña del Mar, Pucón and Puerto Varas in the next two to three years, according to a presentation to investors earlier this month.
Source: GMB / G3 Newswire
