The private equity firm made its original offer earlier this year, but it has since faced opposition from a number of GCGC shareholders who consider the value of $39-per-share too low.
The main opposition comes from Toronto-based BloombergSen Inc, GCGC’s second largest shareholder with 14% of total company shares, and CI Financial, the largest shareholder with 17.5%. BloombergSen Inc is not associated with Bloomberg LP.
In a phone interview with Bloomberg in November, Sanjay Sen, president and co-founder of BloombergSen, said GCGC is “not in need of a sale as it’s still making money and not bleeding cash.”
If they went ahead with the proposed deal, Sen said GCGC’s owners would be “selling a Canadian monopoly asset at rock bottom prices to foreign buyers.”
GCGC’s shareholders also said the offer took advantage of a drop in share price as a result of the COVID-19 pandemic.
Meanwhile, Apollo has defended its $2.5bn offer, arguing that the pandemic may have reduced GCGC’s value in the long-term. Currently, GCGC has been forced to close 19 of its 26 properties as a result of the pandemic.
According to sources close to the matter, if Apollo were to revise its offer then it would stay within the range of $38 to $41-per-share. However, the company may also walk away from the deal if its bid is rejected again at an upcoming shareholder meeting on 23 Dec.
