Advent fund would have to raise offer by Enjoy

 Exactly a month has passed since Enjoy and Advent reached an agreement so that the American fund enters the property of the Chilean company that among others owns the Conrad of Punta del Este. During that time, casino operator titles rose 17.7%, which could eventually change some of the terms of the agreement between the two companies.

As announced on August 21, Advent's ownership of Enjoy will be in two phases. In a first stage, the fund's income will be realized through a capital increase of US $ 170 million, of which Advent will subscribe at least US $ 92 million, considering that the agreed price to be paid was 48 Chilean pesos per share, staying with about 28% of the property.

In a second phase, Advent will launch an OPA at the same subscription price agreed "up to 100% of the shares of Enjoy that are subscribed and paid at the date of the offer," and here the Martinez family (owner of Enjoy) they are not required to sell to Advent.

In this last point is where the market projects that could alter certain points of the agreement. It is that, as a result of the increase of more than 17% in the shares of Enjoy, the value of the company's share today is 57 Chilean pesos, that is, 9 Chilean pesos more than agreed in August, which would generate less interest of the minority shareholders for selling their interest at that price. While the deal would be successful even if the US fund failed to take more than 28% of Enjoy, Advent's intention with the takeover bid is to acquire a higher percentage of the property. However, this could not be achieved at the current agreed price. "If they (Advent) want to buy more shares than the capital increase, they are going to have to raise the price," said MBI broker Germán Guerrero.