The deal, which is still under study and will require regulatory approvals, would create a new company that would be 63.9% owned by Dreams and 36.1% by Enjoy, both companies said in separate securities filings late on Monday.

Dreams and Enjoy suffered financially during lockdowns for the pandemic last year, as they had to shut casinos and hotels. The merger could prove beneficial for both companies.

After several months of diligence, it was finally reported that the transaction is still subject to obtaining the consent of third parties that may be applicable, as well as the approvals of the antitrust authorities and gaming casinos in the respective jurisdictions where the companies have operations.
According to the essential facts sent separately to Chile’s Financial Market Commission (CMF) by both companies, the exchange relationship would give Dreams 63.9% of the shares of the combined company, while Enjoy would keep 36.1% remaining.

The CMF instructed them to inform the market regarding the agreement after the deal reached on September 28, which was communicated by the companies as a fact reserved to the entity.
Enjoy has operations in Antofagasta, San Antonio, Rinconada, Los Angeles, Chiloé and the municipal casinos of Coquimbo, Viña del Mar and Pucón. In addition, the company is present in Punta del Este (Uruguay) and Mendoza (Argentina).

Meanwhile, Dreams has branches in San Francisco de Mostazal, Temuco, Valdivia, Coyhaique and Punta Arenas, in addition to the municipal casinos of Iquique and Puerto Varas.

In 2019 Dreams and Enjoy accounted for 76.4% of the gross income of the casino industry in Chile. In addition, Enjoy had 31% of the permits in the country, and Dreams, 27%, according to figures from the Superintendency of Gaming Casinos.

The next steps for the companies are the reciprocal due diligence process and the negotiation of a binding merger agreement, which is estimated to take approximately 6 to 8 weeks.