Madrid exchange to suspend Codere shares from Friday
Assets to be dissolved only weeks after shareholders took 95% control of the company
Shareholders for the Spanish gaming operator Codere have reached an agreement on the dissolution of company assets which have led to the suspension of trading on the Madrid Stock Exchange.
The announcement comes after Codere shareholders and its former owners last month reached a deal on how the company was to be structured with shareholders holding 95% of the company with the remaining 5% staying in the hands of the former hierarchy.
It was expected that assets would be dissolved and, following a shareholder meeting that determined how to dissolve the company, the National Securities Exchange Commission (CNMV) has been asked to halt trading of Group Codere SA. The exchange agreed and the listing will be suspended from Friday 17 December.
A spokesperson for the CNMV advised: “Shareholders had approved the proposed resolution to dissolve the company and the opening of winding-up proceedings. Furthermore, it was agreed to request the CNMV the suspension and removal from trading of their securities.”
As part of last month’s deal, shareholders agreed to invest €225m (£191m) in exchange for almost complete control of the company. The debt-for-equity offering was a prelude to the sale of company assets.
Codere Online will continue to operate, providing online gambling options to the Spanish and Latin American markets. Codere’s land-based operations have had their problems, but its online presence has been more resilient and has provided online gaming in Spain and Italy as well as many Latin American countries.
The company has seen a strong rise in turnover since the reopening of Latin American national markets allowed it to resume activity in all jurisdictions where it holds an operating licence.