BUSINESS

Codere targets stake in Mexican racetrack operator

TAGs: CIE, Codere

codereThe Spanish gaming group Codere, has been making a strong push to increase their presence in targeted areas. The group made a strong bid to increase their presence in the Italian gaming market with the acquisition of 75% of the Italian company, Gaming Service.

Now, Spanish gaming group Codere is interested in deepening its footprint in Mexico and has an option to buy more of live events and entertainment company Corporación Interamericana de Entretenimiento (CIE), which has agreed to sell a majority stake in its Mexico City horse racetrack and other gambling businesses in order to pay down debt.

In a filing with the Mexican Stock Exchange, CIE said partner Codere SA (CDR.MC) has an option to buy an additional 35.8% stake in CIE Las Americas for 2.66 billion pesos ($218 million), which will increase its stake to 84.8% from 49%, while CIE’s stake will fall to 15.2% from 51%.

Codere plans to finance the transaction with debt. Along with the MXN-2.66-billion payment, it would also take on MXN 1.20 billion of borrowings from its target.

Codere has almost 20,000 gaming machines in Mexico, and claims to be the largest operator of gambling establishments in the country. Its other assets include 96 Mexican bingo halls and an interest in the Las Américas racetrack in Mexico City, which is operated by CIE.

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