Gateway Casinos and Entertainment Ltd could get a new CEO. While the Canadian casino operator is going to go public dodging the IPO route it is expected to soon announce a new Chief Executive Officer.
The new publicly traded company valued company that will be formed following the Gateway’s merger is also estimated to be worth $1.5 billion.
It is reported that the company’s existing Chief executive Tony Santo will retire. He would be replaced by Gateway’s president, Marc Falcone.
Falcone is an industry expert and would bring a vast pool of experience as he has been associated with several gaming and hospitality companies in the US where he offered his expertise and services at executive positions.
Currently, Falcone serves as director of Leisure Acquisition Corp. It should be noted that Gateway’s parent company GTWY Holdings Ltd. will acquire Leisure.
Leisure is also a publicly-traded company. Following the acquisition, the new company’s shares will be listed on the New York Stock Exchange.
Leisure Acquisition Corporation worked with Proskauer in entering into a definitive agreement which led to the merger through a non-conventional route without an IPO. The company claims to have handled Leisure’s initial public offering, which was completed back in December 2017.
Revealing the details, Proskauer earlier said that its team advising Leisure on this deal was led by Jeff Horwitz, a partner and co-head of their Private Equity Real Estate and Hospitality, Gaming & Leisure Groups, and Daniel Ganitsky, a partner in their Mergers & Acquisitions Group.
According to the terms of the merger announced last week, the existing shareholder of GTWY will remain the largest shareholder in the new entity. However, the merger is subject to approvals from shareholders, regulators and government agencies including Ontario Lottery and Gaming Corp.
Gateway is amongst the leading casino gambling operator in Canada. It operates 27 gaming and entertainment facilities in British Columbia, Alberta, and Ontario, and also the Grand Villa Casino in Burnaby where it is headquartered.
Last week the company announced the merger which would make it a publicly-traded company. Avoiding the conventional IPO route, the deal is facilitated through a special purpose acquisition vehicle SPAC. It uses proceeds from an IPO, together with borrowed funds, to acquire companies that are usually privately held.