Private equity firm Apollo is offering $ 3.3 billion to casino firm Great Canadian Gaming Corp.

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The Great Canadian Gaming Corp. deal to be acquired for $ 3.3 billion by a US private equity firm was quickly rejected Wednesday by some minority shareholders of the casino operator.Apollo Global Management Inc. has agreed to pay $ 39 per share for the company – a price that the CEO of Great Canadian says is very good for shareholders.

But Bloombergsen Investment Partners, a Toronto-based investment firm that owns about 14% of Great Canadian shares, told an investor that the Apollo deal doesn’t come close to the stock’s true long-term value.

Representatives of other minority shareholders Madison Avenue Partners and investors in Breach Inlet Capital have said they will also vote against the Apollo deal, which is subject to various shareholder and regulator approvals.

Ante up

Among other things, investors said Great Canadian should have looked for alternatives to the Apollo offering, which was announced Tuesday night ahead of the release of the company’s expected third quarter financial report on Wednesday.

Great Canadian Gaming shares climbed more than 35% when the Toronto Stock Exchange opened, gaining $ 10.11 to trade at $ 39.02 early in trading.

The company operates 25 gaming, entertainment and hospitality facilities in Ontario, British Columbia, New Brunswick and Nova Scotia.

Great Canadian says its board of directors has unanimously recommended that shareholders vote in favor of the transaction at a meeting slated for December.

Once the transaction is completed, Great Canadian is expected to retain its head office in Toronto, led by a Canadian management team.

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