(AsiaGameHub) –   Codere, Spain’s second-largest gambling company after Cirsa, is being offered for sale with a valuation of approximately €2 billion ($2.3 billion). 

According to a report from Spanish news outlet Expansión, the company has engaged US firm Jefferies and Australia-based Macquarie Capital as financial advisors to oversee the sale process. 

Sale To Complete In Summer

The process remains in its early stages, with a provisional mid-May deadline for interested parties to submit non-binding offers. Binding offers are expected to be submitted around July, with a purchase agreement finalized by August. 

Established by the Martínez Sampedro family in 1980, the company has undergone multiple restructurings in recent years. Its current shareholding is now distributed among roughly 84 investment funds, with Davidson Kempner holding a 13.3% stake, followed by Palmerston Capital (5.6%), Deltroit (5.47%), System 2 Capital (5.15%), and Invesco (5.14%).

Company in Good Financial Health

A 2024 agreement with creditors converted approximately €1.2 billion of debt into equity. Gonzaga Higuero, the company’s CEO, described the deal as “a decisive success for Codere, a guarantee for the future that secures our financial position and reactivates the company’s ability to achieve its set growth objectives.”

In 2024, the group recorded revenues of €1.346 billion ($1.56 billion) and an adjusted EBITDA of €179 million ($207 million). 

The company operates in seven countries: Spain, Italy, Argentina, Mexico, Panama, Colombia, and Uruguay, through both physical gambling venues and online platforms. Its business includes slot machines, bingo halls, sports betting terminals, arcades, gaming rooms, bars, and racetracks. 

Its online division is listed separately on the Nasdaq but will also be included in the sale. This segment accounted for 12% of total revenue in 2024. 

Spain No Longer Highest Revenue Stream

Though founded in Spain, the country’s strict stance on gambling has led to reduced revenue there. Codere was among several companies fined by Spain’s regulator last year during a gambling crackdown. The company was fined €17,500 for using unapproved technical systems.

In 2024, Italy and Mexico contributed 21% and 17% of the company’s revenue, respectively, while Spain generated around 16%. 

Gambling companies in Spain must comply with stricter regulations, including displaying strongly worded warning messages similar to those on tobacco products. These measures were introduced by the country last year. 

 The new messages include:

• Gambling addiction is a risk of gambling
• The probability of being a losing gambler is 75%
• Losses for all gamblers are four times greater than their winnings 

Minister for Social Rights Pablo Bustinduy has led the reforms, stating that “the responsibility should not fall on users but on the authorities, who have the democratic duty to ensure that the environments they access are safe.”

It remains unclear whether Spain’s stricter gambling regulations will impact the potential sale of Codere.