Codere is reportedly up for sale for $2.3bn, buyers still not confirmed

Spanish gambling behemoth Codere may be selling its assets as the group is reportedly looking for a buyer, valuing its business at $2.3bn according to multiple media reports, including Reuters.

The company has hired Jefferies and Macquarie Capital to advise on an imminent deal, the media said, citing another outlet, Expansion. A sale is still in its innings with bids expected by mid-May and subsequent binding offers possibly placed by mid-July. The goal, say the reports, is to have a deal secured before the August holiday season. Codere is a particularly strong asset to acquire, and it is the second-largest gambling group in Spain as of today. The success of a subsequent deal will depend on how much buyers are interested in beginning with. As gambling continues to be one of the strongest sectors when it comes to its ability to turn a profit, investors are generally split on whether buying more assets is worthwhile as opposed to focusing on developing existing ones. Wynn Resorts’ Middle East project is currently facing what the company hopes to be short-term geopolitical challenges, whereas other groups are trimming debt and dropping weighty assets that they feel aren’t contributing to their bottom line. At the same time, Codere is both a digital and land-based giant that has been expanding gradually. What is more important, the company has been able to hit a hard reset of its balance sheet, effectively transforming itself into a worthwhile acquisition target, with a significant reduction of debt, stronger liquidity, and its owners now looking for an exit.