Zoe Sharp
Chilean casino operator Enjoy could be acquired by Mexico’s Logrand Entertainment Group in a potential purchase. These developments follow a failed merger between Enjoy and another large Chilean gambling company, Dreams, as the companies’ plans fell through this April. Enjoy also shared in August that it was looking to sell company assets, and according to anonymous sources that reached out to media outlet Pulso, Logrand is discussing plans to potentially acquire Enjoy.
It seems that Logrand will not acquire the entire Enjoy company, however. Instead, only Enjoy’s Chilean operations will be put under the control of Logrand as part of the potential deal. Logrand has not expressed a desire for the inclusion of other company assets in the acquisition.
Enjoy and Dream’s Planned Merger Was Rejected
Enjoy and Dreams’ plans to merge were first made public in 2022. The first signs of trouble surfaced at the beginning of April 2023, when both Enjoy and Dream faced accusations which alleged that the companies had conducted undisclosed talks via instant messaging application WhatsApp. The app is known for being privacy-oriented and enabling individuals to communicate without being detected, and Enjoy and Dream’s executives were alleged to have used this to their advantage in order to manipulate a tender offer. This prompted Chile’s National Economic Prosecutor (FNE) to launch an investigation.
Moreover, Chile’s National Economic Prosecutor had expressed worries over the merger even before information regarding the alleged secret discussions had surfaced, citing concerns surrounding market competitiveness.
As a result of the investigation, shareholders put a halt to the merger. Had the deal gone through, 64% of the joint entity would have belonged to Dreams’ shareholders, while Enjoy shareholders would have possessed 36%.
Enjoy’s Chilean Operations Have a 40% Market Share in the Country
Enjoy saw significant restructuring changes in 2022, and the creditors tied to the company at the time seized full control of Enjoy’s operations. Currently, Euroamerica is the shareholder with the biggest ownership of Enjoy assets – 15.25%. Enjoy has had its ups and downs since then. The year 2023 was rough for the company, seeing as despite seeing an 8.26% income growth in comparison to 2023, the losses of CLP38.6 billion ($45.2 million) recorded in the first half of 2023 mark a difference of around CLP12.5 billion ($13.9 million) in additional losses compared to the previous year.
In a results presentation to investors, Enjoy had a 37% market share in the country in 2023’s first semester, which was slightly lower than competing company Dreams’ 39%. The tides turned in the fiscal year’s second quarter, however, as Enjoy’s market share grew to 40%, while Dreams’ was lowered to 37%.
Both companies remain the largest casino operators in Chile, and Logrand’s potential acquisition of Enjoy could lead to improvements in the Chilean operator’s situation. Logrand Entertainment Group’s operations are, at the time of writing, strictly focused within the territories of six states within Mexico, but it seems that the company is looking to expand its reach to an international audience, namely Chilean gamblers.