Latin American gaming operator Enjoy is in the advanced process of selling part of its assets in Chile to the Mexican group Logrand, while in Uruguay other investors are interested in the former Conrad business.
According to the Chilean newspaper Diario Financiero, Enjoy is in “a deep level of negotiations to fix the assets and prices” that Logrand will offer for its casinos. The result of all these conversations will be known on June 18, when they will have to present to the creditors’ meeting the reorganization plan, where they will establish how and when they will pay their debts.
The conversations with creditors are in advanced stages and they seek to reach the highest consensus at the meeting to unblock and finish the reorganization quickly, according to the above-mentioned media.
Enjoy’s board of directors, as well as the banks and legal advisors, have not stopped talking to creditors and potential buyers to get their feedback on the plan. Meanwhile, the investigation impacting Enjoy for possible collusion in the casino industry carried out by the National Economic Prosecutor’s Office (FNE), would already be in its final stages, after being summoned to testify all those involved. In addition, if there were to be a fine for the company, everything would be protected in the contracts so that the new owner would not have to pay out of pocket.
In the Chilean case, sources close to the process indicate that Logrand would not keep all the operations, since locations such as Viña del Mar, Coquimbo, and Pucón were won in the last bidding process for “stratospheric” prices and they would prefer to terminate the bidding process, paying the resulting guarantee bonds.
In this case, other operators, such as Dreams and Marina del Sol, would be looking to take part in a possible new bidding process for these places, or even if new Enjoy shareholders decide to compete again, but at much more realistic prices than those offered last time.
Punta del Este
For the establishment in Uruguay, there are already five interested parties in advanced talks, although there are no binding offers yet. They are real estate companies from Latin America, Europe and Asia. The hotel near the beach and with high occupancy, besides being an iconic point in the country, is what draws the most interest. The casino is a plus, but not the main asset.
Some industry experts believe that the casino industry in Uruguay will lose its luster in the next decade because they foresee that Brazil will approve physical casinos, after the approval of online gambling at the end of last year, and Punta del Este operators will lose part of their audience.
“The Conrad today is worth less than half. Hopefully around $50 million. They bought it for $350 million,” said an expert, alluding to the high investment Enjoy made when it was controlled by the Martínez family.
However, those closest to the company rule out that the negotiations are influenced by the future casinos in Brazil because recently they have promoted Conrad as a tourist attraction, more than just a casino. In fact, according to Diario Financiero, the company has several alliances to bring direct public from the United States or Europe in private flights to the Uruguayan beach. Moreover, as those in charge of Conrad know the Brazilian public so well, some do not rule out that they may decide to bet on Brazil in Enjoy’s new stage.
At the end of 2023, a “short list of candidates” for the eventual sale of Enjoy’s operations in Punta del Este, whose management is in charge of the firm ASSET Chile, had already been reported. According to Diario Financiero’s sources, it was estimated that the operation would occur during 2024. All alternatives had been evaluated, “from selling a part of the assets to partnering with a global player”.