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Codere family order €900M compensation from US investors

The Sampedro family contend the amount is a ‘justifiable compensation’ after US investors ‘purposely bypassed’ a takeover bid to the company's minority shareholders

Spanish gaming operator Codere's founding family request €900M from US investors. The Martinez Sampedro family filed with the National Securities Market Commission in Spain, demanding compensation after claiming the group of investors "purposely bypassed" a takeover bid to the company's minority shareholders.

The group of US investors, who assumed control over Codere after the company's bankruptcy restructuring in 2018, denied the Sampedros of voting rights after their representation in the board was terminated.

The founding family requested for the Spanish regulator to impose on the remaining US investors of the gaming company to acquire the family's 14% stake for at least €900M.

The largest shareholders of the company are Edward Arnold Mule with 23.36% stake, and US funds Silver Point with 21.79% and M&G PLC with 20.97%. These US investors negate the claim, contending that their combined takeover was essential to saving the company from bankruptcy. 

Given outstanding debt, Codere was forced to accept a 'liquidation agreement' last month where creditors agreed to convert €350 million of Codere debt into equity.

Source: Gambling News

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