Through a statement, the companies reported that “the parties did not agree on the necessary agreements to carry out the transaction, not being able to exchange the background and documents necessary to carry out due diligence, legal, tax, and labor processes,” which led them to make the decision.
In May 2019, both firms announced their merger. However, in mid-November the casino operators reported that the transaction had been suspended.
If the operation had been completed, the resulting company would have kept 48% of the local market. They even considered a possible IPO to raise capital. After the recent announcement, the memorandum of understanding was void.
However, already in August last year, Sun Dreams began informing its shareholders that they were not reaching an agreement to finalize the merger, and now this possibility is finally over.
Source: GMB / La Tercera (Chile)
