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Following the announcement on Tuesday, Great Canadian shares were trading up $4.23 at $34.12 on Canada’s main stock index, the Toronto Stock Exchange, a gain of more than 10 percent.
Together, Clarivest and Great Canadian will develop and operate OLG Slots at Mohawk Racetrack, OLG Slots at Grand River Raceway, OLG Slots at Flamboro Downs and OLG Casino Brantford, according to reports.
Under the terms of the agreement, Great Canadian and Clarivest will have exclusive operating rights to the assets for a period of at least 20 years. The four facilities employ upwards of 1,400 staff and have a combined total of more than 2,500 slot machines and approximately 60 table games.
The operations will be run by Great Canadian, which will own 55 percent of the partnership, while the remaining 45 percent will be held by Clarivest.
Brookfield Business Partners L.P. (TSX:BBU.UN) and Great Canadian were chosen by the OLG to operate its casinos in the Greater Toronto Area (the “GTA Bundle”) including OLG Slots at Woodbine, Great Blue Heron Casino located in the Mississaugas of Scugog Island First Nation and OLG Slots at Ajax Downs. Together, the three generated over $1 billion in gross gaming revenue in 2016. All combined they have more than 60 table games, 4,000 slot machines and employ upwards of 2,200.
The two companies will also have exclusive rights to operate the three casinos for a minimum period of 22 years in keeping with the requirements of a Casino Operating and Services Agreement.
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