Shares of the Codere group in the hands of minority investors have been valued at zero euros. This situation also affects the warrants delivered to the shareholders of Codere SA, which allowed them to benefit from a future sale of the company. In 2021, Codere's financial restructuring resulted in the creation of a new corporate structure in Luxembourg, headed by Codere New Topco.
Through this restructuring, the bondholders acquired 95% of the capital, significantly diluting the participation of the minority shareholders of Codere SA, who were left with just 5% and some warrants.
These latter financial instruments had certain conditions: the capital value of Codere New Topco had to reach 220 million euros and an IPO, a sale or a merger had to take place within a period of 10 years
The 2023 accounts of Codere SA, prepared by its liquidator, show that the participation of minority shareholders, which in December 2021 had a fair value of 14 million euros, was reduced to 4.3 million a year later and is now has devalued to zero euros due to a new deterioration.
The value of the warrants, which were initially recorded as worth €21.3 million in 2021, has also been reduced to zero. The liquidator's accounts indicate that it is unlikely to reach a capital value of more than 220 million euros, so it has been decided to leave the net book value of the investment at 0 euros.
