Codere Online elects board nominations ahead of full divestment
DD3 Acquisition Corp, the SPAC vehicle that leads the anticipated $350 million IPO of Codere Online on the US Nasdaq, has disclosed the company’s first executive directorship appointments.
Maintaining schedules, DD3 and Codere Online are expected to merge on Thursday 18 November – following the conclusion of a shareholders meeting to finalise the divestment of Codere Online from Grupo Codere SA.
Launched in 2014, Codere Online has operated as the flagship igaming and sportsbook unit of Bolsa Madrid gambling group Codere SA – establishing its online presence in Spain and the LatAm markets of Colombia, Mexico and Panama.
Filing a ‘nominations agreement’, DD3 disclosed that Grupo Codere as ‘deal parent’ had elected Codere Online executives Moshe Edree (Managing Director) and Oscar Iglesias (CFO) as first members of the business’ new board of directors.
Further parent nominations saw Alejandro Rodino current Grupo Codere Global Strategy and Corporate Affairs Officer elected as an independent director to the board, alongside Laurent Teitgen, a partner of Luxembourg private equity trust Fidelia SA.
As deal sponsor, DD3 confirmed its election of SPAC deal maker Dr Martin Werner as Chairman of Codere Online’s audit committee. MG Capital managing partner Daniel Valdez will support Werner as an independent director.
Codere Online’s board awaits the appointment of a seventh director and corporate chairman, that will be agreed upon by “parent and sponsor prior to the consummation of the business combination”.
Last week, Codere Online published its first trading update as an independent business, in which leadership set a 2021 net revenue target of between €81-86 million – citing that online growth in Mexico and Colombia had helped offset Q3 regulatory headwinds in Spain.
Elsewhere, deal parent Grupo Codere continues its struggles reporting Q3 operating losses of €75 million, attributed to period interest repayments of €45 million and €7 million in XE fluctuations impacting the operating cost of its LatAm units.
Despite setbacks, Grupo Codere has agreed with its existing creditors that it will enter an extensive bond restructuring initiated on 19 November. The restructuring plan was first announced at the end of April, helping Grupo Codere governance secure a cash injection of €225 million.
Grupo Codere creditors had previously agreed for Codere Online to be divested to SPAC partner DD3 as an approved scheme of the gambling group’s wider restructuring plans.