Rivals Enjoy and Dreams Agree Merger terms to Create LatAm Casino Superpower


After signing a non-binding agreement in October 2021, the two largest casino concerns in Chile, with holdings throughout Latin America, have agreed on terms of a merger, pending regulatory and some shareholder approvals.

Enjoy S.A. (CCC) and Dreams S.A will merge with the Enjoy name surviving and its shareholders controlling 36% of the newly formed company. Dreams’ shareholders (Claudio and Humberto Fischer) will lose the brand name but enjoy the larger share of stock at about 64%.

Fitch Ratings confirmed on Tuesday most of their analysis from October that the merger has potential positives for the Enjoy credit profile. However, a requirement that Enjoy shareholders who opt out can’t exceed 9% of total shares could push full consummation of the deal into the last quarter of 2022 as opposed to “well into 2022” as was determined late last year.

Bolstered Bottom Line, Reach, and Scale

The analyst’s notes mention the historically higher margins maintained by Dreams contributing to a better bottom line for the newly merged company as well as adding breadth and depth to the current Enjoy capital structure, geographic diversity, and to an overall greater scale.

Supply chain and other redundancies will be eliminated while the new company’s footprint will cover almost 60% of all casinos in Chile and account for more than 75% of all revenues from the local gaming industry. Footfall at the new company’s casinos will also occur in Argentina, Colombia, Panama, Peru, and Uruguay.

Dreams covers more areas geographically with a total of 18 active licenses, making it the largest casino operator in Latin America with eight casinos open in Lima, Peru, seven in Chile, three in Columbia and one each in Panama and Argentina. Enjoy leads the Chilean industry with eight casinos there and a single venue in Uruguay. About ⅓ of all casino permits in Chile belong to Enjoy.

A Diversified Portfolio

Not all of the aforementioned properties are standalone casinos, holdings include hotels and event centers as well as restaurants and tourist destinations throughout the region.

Dreams Chairman, Claudio Fischer said: “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.”

Enjoy Chairman Henry Comber added, “…the merger of Dreams and Enjoy will consolidate the leadership of a Chilean company in the casino industry in Latin America.”

Source: Enjoy & Dreams Merger Agreement Potentially Positive for Enjoy’s Ratings, FitchRatings, January 18, 2022

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