Codere Prepares for Potential €2 Billion Sale

Key Points

• Codere has started a sale process that may value the company above €2 billion, with bids likely between May and July.
• The 2024 restructuring reduced debt strongly while improving liquidity and overall profit performance across the business.
• The buyer pool could stay narrow because ESG rules continue to affect investment decisions in the gambling sector.

Spanish gambling group Codere begins work on preparations for a potential sale. The company could reach a value above €2 billion in the transaction. This figure stands at about $2.3 billion. Early stages define the current process. Jefferies and Macquarie Capital receive appointments as financial advisers. They handle the transaction and draw serious bidders toward it. The sale advances at speed after the formal launch. Parties show interest and send non-binding offers before mid-May. Binding bids arrive during early July. Codere targets completion of the deal ahead of the August summer break.

Company Background and Operations

The group started in 1980 and developed into Spain’s second-largest gambling and leisure group. Cirsa remains ahead of Codere in this ranking. Operations spread through several regulated international markets. Spain, Italy, Argentina, Mexico, Panama, Colombia, and Uruguay form part of these markets. Land-based services join online gambling within the business. The proposed transaction brings in Codere Online. This Nasdaq-listed digital division supports the main growth strategy. Ownership structure today results from debt-for-equity restructuring. Completion occurs in October 2024. Approximately 84 investment funds own the company now. The founding Martínez Sampedro family steps aside as controlling stakeholders. Bondholders take charge via a new holding entity named Codere New Topco S.A. Operational authority rests with this entity. Bondholders hold roughly 95% control. Codere S.A. maintains a 5% stake and holds extra warrants. Davidson Kempner emerges as the biggest individual shareholder. Its stake equals 13.3%. Palmerston Capital, Detroit, System 2 Capital, and Invesco appear among other notable shareholders.

Financial Restructuring and Performance

Restructuring in 2024 alters the financial position of Codere. Creditors add €225 million of fresh capital to the business. Conversion turns more than €350 million of senior bond debt into equity. Debt maturities extend to September 2026 and November 2027 under the agreement. Financial flexibility grows for the company because of these changes. Gross debt falls from around €1.4 billion to €190 million. Liquidity rises by €60 million at the same time. Recovery appears in operational performance. Revenue totals €1.34 billion for Codere in 2024. Adjusted EBITDA records €179 million during that period. Recent data reveals EBITDA moves past €200 million. Stabilisation continues and profitability shows improvement. Experienced advisers receive an appointment to guide the process.

The step aims at credible buyers instead of basic market checks. Industrial players and financial investors form the group of potential bidders. Interested parties are few in number for certain reasons. Private equity firms sometimes reject gambling investments. Environmental, social, and governance constraints create barriers. Competition weakens inside the bidding process as a result. The potential sale creates a pivotal step for Codere. Improved financial health receives attention along with the streamlined balance sheet. A successful transaction brings a decisive transition. Financial strain and restructuring occupy past years. Different ownership opens a new phase for the company.