Spain’s National Securities Exchange Commission (CNMV) has been forced to suspend the listing of Grupo Codere SA shares on the Bolsa Madrid Exchange.
The exchange regulator informed that its decision was taken, following an extraordinary meeting of shareholders that approved for Codere to begin a settlement process for the company to be dissolved.
As a result, the CNMV has been ordered by Codere shareholders to suspend the listing of the company that is scheduled take place on Friday 17 December.
“On 10 December 2021, CODERE SA submitted an Other relevant information statement to the Comisión Nacional del Mercado de Valores (CNMV) stating that at the Company’s Extraordinary General Shareholders’ Meeting, held on 10 December 2021.” – read the CNMV statement.
“Shareholders had approved the proposed resolution to dissolve the company and the opening of winding-up proceedings. Furthermore, it was agreed to request the CNMV the suspension and removal from trading of their securities.”
The CNMV informed that its de-listing of Codere shares will be undertaken as a definitive action unless shareholders agree on another outcome.
During November, Codere creditors took control of the company, choosing to observe a new debt-for-equity arrangement that had been struck as part of the firm’s latest restructuring deal.
The deal saw Codere establish a new holding company ‘Codere New Topco SA’ – that would be 95% owned by bondholders, with previous ownership permitted a 5% stake in the business, combined with an option to increase its stake by up to 15% dependent on the outcome of a future sale.
Bondholders agreed to maintain Codere afloat, by injecting €225 million cash capital into the new business.
Running concurrently to the restructure, bondholders had agreed for Codere to divest its Spanish and LatAm online gambling unit via a merger with SPAC vehicle DD3 Acquisition Corp. The approved divestment saw Codere Online complete its merger with DD3 on 1 December, securing its listing on the US Nasdaq.
A break-up of Codere assets will likely have a transformative impact on the South American gambling landscape in which the Spanish gambling group operates 57,130 gaming machine contracts in Mexico, Spain, Colombia, Italy, Argentina, Panama and Uruguay.
Argentina carries Codere’s biggest LatAm market presence, which sees the group operate 14 Bingo Halls and 13 gaming halls within the Province of Buenos Aires. Meanwhile, having expanded its presence in Mexico through strategic partnerships, Codere operates 95 gaming halls, 93 sports betting stores, and a racetrack.
Founded in 1980, the troubles of Codere have been well documented, as the Spanish operator has faced a year-on-year battle to maintain its business for creditors calling on its €1 billion debt.