Codere is planning to sell its company and has hired Jefferies and Macquarie Capital to help them with this sale process.
The sale process is just beginning, sources say that Codere is worth more than €2 billion. Sources believe that initial non-binding offers will be able to be made by the middle of May, with a formal bidding process starting in July and the potential for a deal to happen before August.
The ownership of Codere is currently spread out among approximately 84 different investment funds, due to their recent re-structuring. Codere’s core creditors provided €225 million in injections of new capital, converted over €350 million worth of debt into equity and extended the maturities of their debt from 2026 to 2027. Operational control of Codere has shifted from the original company to Codere New Topco S.A., which is now approximately 95% owned by its bondholders.
Codere’s overall financial situation has improved greatly following their re-structuring. A recent report from Codere states that for the year ended December 31, 2024 Codere generated €1.34 billion in revenue and had an adjusted EBITDA of €179 million. The last several months have shown that Codere’s EBITDA will exceed €200 million. The company has reduced its gross debt levels from approximately one billion four hundred million (€1.4 billion) to approximately one hundred ninety million (€190 million), while also increasing liquidity.
While the clean-up of Codere’s balance sheet helps make Codere an attractive acquisition target, the overall pool of potential buyers may remain limited since many investors continue to avoid investing in companies within the gaming industry because of ESG (Environmental, Social, Governance) issues.
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