The Globe and Mail reports in its Thursday edition that Gateway Casinos & Entertainment may be left at the altar, as the U.S. company that pledged to acquire it takes steps to find a new partner.
The Globe's Andrew Willis writes that Gateway, controlled by Newton Glassman's Catalyst Capital Group, announced plans to merge with Leisure Acquisition in December, in what has been described as a $1.5-billion deal. Catalyst acquired Gateway in 2009 and first tried to sell it through an initial public offering in 2012, then pulled the deal. Catalyst filed for a second Gateway IPO in 2018, then shifted gears a year later, announcing plans to combine forces with Nasdaq-listed Leisure Acquisition. If the Leisure Acquisition deal falls apart, it will be the latest in a string of
Catalyst-owned businesses that Mr. Glassman promised would be sold, then failed to exit. In recent weeks, potential buyers in other sectors abandoned a number of takeovers announced prior to COVID-19. The list of spurned companies features businesses similar to casinos in that they require large numbers of people to be in small spaces, with failed bids for theatre chain Cineplex, retailer Victoria's Secret and mall owner Taubman Centers.
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