The National Economic Prosecutor's Office of Chile gave the green light to proceed with the second judicial reorganization process of the company.
Chile.- The National Economic Prosecutor's Office (FNE) approved the acquisition of six casinos that belonged to the Enjoy chain by its creditors: Avla Seguros S.A, WEG Capital SpA and Banco BTG Pactual. The agreement is part of the second judicial reorganization process of the company.
The process included the division of the former Enjoy into three: Enjoy S.A (NewCo 3), which includes the casinos in San Antonio and Los Ángeles, NewCo 1, which retains the casino in Punta del Este and other real estate assets, and Casinos de Chile SpA (NewCo 2), which includes the casinos and hotels in Rinconada, Antofagasta, Chiloé, Viña del Mar, Coquimbo, Pucón, and Puerto Varas. The latter is precisely the one involved in the operation approved by the FNE.
The buyers of these assets were three. The first is Avla, a company with a presence in the credit insurance industry in Chile, Peru, Mexico, Brazil, and the United States. The second is WEG Capital, a firm dedicated to financial advisory and investments. And the last, a unit of the investment bank BTG domiciled in the Cayman Islands.
The notification of the operation of the parties involved was made on November 22, 2024, after the 8th Civil Court of Santiago approved the judicial reorganization agreement proposal of Enjoy in August of the previous year, with the aim of continuing operational continuity to these subsidiaries. The authorization of the same occurred after the departure of the person in charge of the judicial process, the former general manager Esteban Rigo-Righi in December.
In the face of possible risks of vertical and horizontal overlap, the FNE highlighted in the competitive analysis conducted that there is no risk of these phenomena occurring, as “they do not perform nor plan to perform economic activities in the same relevant market, nor in vertically related markets”.
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“Given that the purchasers do not participate in activities related to the operation of gaming casinos or in the provision of other services associated with that industry, the Operation would not generate a current or potential overlap in the activities of the Parties, neither directly nor indirectly, nor at a horizontal, vertical, or conglomerate level. Thus, the operation would not result in an increase in market concentration in the activities involving the economic agents and assets of the Operation,” the prosecutor's office pointed out.
