Codere Seeking €2 Billion Deal

(AsiaGameHub) –   Codere has engaged Jefferies and Macquarie Capital to facilitate the sale of the company.

The divestment process is in its early stages, with insiders valuing Codere at over €2 billion. Preliminary non-binding bids are expected by mid-May, followed by a formal auction in July, with a final agreement potentially reached by August.

Following a recent restructuring, Codere’s ownership is distributed across roughly 84 investment funds. Key creditors injected €225 million in fresh capital, swapped more than €350 million of debt for equity, and pushed back debt maturities from 2026 to 2027. Management of the business has transitioned to Codere New Topco S.A., which is currently about 95% owned by bondholders.

The company’s financial health has seen significant improvement post-restructuring. According to a recent report, Codere recorded €1.34 billion in revenue and an adjusted EBITDA of €179 million for the fiscal year ending December 31, 2024. Recent performance suggests EBITDA will surpass €200 million. Furthermore, gross debt has been slashed from €1.4 billion to roughly €190 million, alongside bolstered liquidity.

Although the strengthened balance sheet enhances Codere’s appeal to buyers, the candidate pool might be restricted as many investors shy away from the gambling sector due to ESG (Environmental, Social, and Governance) considerations.