Chris Colvin from Breach Inlet Capital on Apollo's attempt to steal Great Canadian Gaming
On November 10th, Great Canadian Gaming (GC) announced a deal to sell themselves to Apollo (APO) for $39/share. On the subsequent earnings call, shareholders immediately revolted, with several of GC's largest shareholders telling the company they would not vote for the deal because they thought the deal substantially undervalued the company.
One of those shareholders was Chris Colvin from Breach Inlet Capital. In this episode, Chris comes on to discuss why he sees so much value in GC, why he thinks shareholders should vote this deal down, and what comes next for GC if the Apollo deal is voted down.
Chapters
0:00 Intro
1:15 Chris and Breach Inlet's background
3:55 How Chris approaches shorting
7:40 Why Chris sees value in timeshares and Canadian companies
12:00 Great Canadian overview and background
20:10 Why Chris thinks GC can earn $6/share in the near future
28:30 How the company signaled they were undervalued pre-COVID
30:30 Why Apollo's "big premium" bid isn't that big
43:15 Why the Apollo deal seems designed to low ball shareholders
52:30 GC's economic sensitivity (or lack thereof)
55:00 Timeline for Apollo deal and expectations for how it plays out
1:00:45 How GC could structure a deal that Chris would vote for
Breach Inlet website: http://www.breachinletcap.com/
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