Light & Wonder, previously known as Scientific Games Corp, a flagship developer of land-based and digital games based in Las Vegas, Nevada, has reported its latest the remaining 17% stake in digital gaming company, SciPlay Corp.
Light & Wonder’s offer:
“SciPlay’s board has received an offer from the company in which proposes to pay US$20.00 per SciPlay share, in an all-cash contract valued at US$422 million,” according to a Thursday press release. In addition, if the deal closes, SciPlay would officially become a wholly owned subsidiary of Light & Wonder. In this regard, the suitor stated that “the transaction would unify Light & Wonder businesses and balance sheet, accelerating the company’s cross-platform strategy, and optimizing investment of capital.”
“The proposed consideration would imply an enterprise value of US$2.1 billion for SciPlay, and a premium of 28.5 percent based on the SciPlay stock price as of the close of business on May 17,” according to the announcement. Furthermore, in a letter to SciPlay’s board, Light & Wonder’s president and chief executive, Matthew Wilson, said: “The proposed transaction offers SciPlay’s public shareholders a compelling combination of value, speed and certainty.” Additionally, he stated that “his company would not require any third-party financing to fully fund the deal. The firm does not expect the deal to require any regulatory approvals or the approval of Light & Wonder’s shareholders.”
Second attempt to buy the remaining shares:
Right now, Light & Wonder possess around 83% of the economic interest and 98% of the voting interest in SciPlay. On that note, Light & Wonder’s CEO also said: “The company would not expect to vote in favor of any alternative sale, merger or other corporate transaction involving SciPlay, nor divest or sell any portion of our ownership interest.â€� However, this is Light & Wonder’s second attempt to purchase the remaining shares in SciPlay. During December 2021, the company removed its all-shares offer to purchase what was at the time a 19% remaining stake in SciPlay. Additionally, SciPlay was previously a wholly owned subsidiary of the then Scientific Games, and operated as its social gaming arm. But, during 2019, the parent directed an initial public offering of a minority interest in SciPlay.
Light & Wonder said on Wednesday that “it had received conditional approval from the Australian Securities Exchange for the company’s secondary listing on that bourse.” Furthermore, the company disclosed a net profit of US$27 million in the three months to March 31, compared with a loss of US$67 million a year earlier.