Private equity companies Apax, Permira and Advent are presently counting their money and considering making an offer for a 49% interest in Spanish group Codere, controlled by the Martinez Sampedro family. The Madrid-based company has been valued at US$1.9 billion, give or take a few dollars (or Euros) here or there.

The Martinez Sampedro family, which owns over 90% of Codere, has charged the investment banks Morgan Stanley and Credit Suisse with the task of finding buyers for up to 49% of the group. Other private equity companies may also be considering making a bid, such as Providence and Hellman & Friedman, following in the footsteps of Texas Pacific Group and Apollo who went hunting and caught Harrah’s Entertainment.

Codere began operating slot machines in Spain in 1980, expanding into the Italian and Latin American markets. It now operates bingos in Spain, Argentina, Mexico, Colombia and Italy, and betting facilities in Mexico and Uruguay as well as racetracks at the historic Maroñas in Uruguay and Hipódromo Presidente Remón in Panama. The company also operates casinos in Peru, Colombia and Panama and intends to open 10 Off Track Betting facilities in Brazil.

Previously Codere made two failed attempts to launch on the Spanish stock exchange. It has now instructed its bankers to work on a third attempt as well as seek private equity partners, in order to raise funds for further expansion. Last year Codere EBITDA was €175.6 million, up 92.5% on 2005. Over half the company’s earnings come from its operations in Latin America, particularly from Argentina and Mexico. A tempting morsel for venture capital. (E-04.20.07)

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