The Spanish Codere Group is to acquire an additional 35.8 per cent stake in CIE Las America, a racetrack, gaming and entertainment subsidiary of its Mexican partner CIE.
In 2007, Codere acquired a 49 per cent stake in CIE LA and will now increase its share to 84.8 per cent in a deal worth $209m. CIE LA operates 52 gambling establishments in Mexico, including the Hipodrome de las Americas in Mexico City. Codere also holds a 67.3 per cent stake in a further five licensees operating a total of 44 gambling establishments, with the remaining share held by Grupo Caliente. As a result, Codere is the largest local gaming operator in Mexico, with approximately 20,000 gaming terminals. The acquisition was announced shortly after Codere said it was seeking to raise funds through the issue of senior notes worth $300m. This offering constituted the first stage of the group's strategy for re-denominating its capital structure in local Latin American currencies and US dollars in preparation of a sale of a stake in its operations in Latin America.
"Despite the current difficult environment, the Codere Group continues to generate interest among international investors and we are very satisfied with the placement, as the demand amply exceeded the amount of the issue," said the company's CFO, David Elizaga.
