Scientific Games Gives Up on Buying 19% Capital Interest in SciPlay

By | December 27, 2021

scientific_games_withdraws_offer_to_acquire_remaining_19_equity_interest_in_sciplayDuring this year we had the opportunity to witness the great things that have happened within the iGaming industry. However, as the year is not over yet, there is another very important news!

Namely, Scientific Games announced the purchase of the remaining 19% capital interest in SciPlay in the middle of this year, on July 15. The company recently changed its mind and announced that it is withdrawing the purchase offer.

In order for SciPlay shareholders to receive 0.25 stock of SGMS shares for each share of SciPlay stock, Scientific Games offered integration with SciPlay. However, the company in the end decided to keep only 81% economic share and 98% voting share in SciPlay.

Barry Cottle, President and Chief Executive Officer of Scientific Games, commented on the decision, saying: “In line with our approach to capital management and disciplined M&A, we have decided that continuing to pursue this opportunity would not be prudent for our shareholders at this time. We remain committed to our strategy of leveraging our unparalleled portfolio of hit franchises, world-class talent, and premium content engine to develop great games fully cross-platform. SciPlay remains a strategic asset and has the opportunity to drive meaningful value as it grows its social casino market share and expands into the $ 20B casual genres leveraging its expertise in engagement and monetization. We will continue to invest in this sector in a disciplined manner.”

But That’s Not the End of the News

In addition to this decision, the company has made another very important one. Namely, Scientific Games decided to sell its Lottery and Sports Betting businesses. The buyer of this business should set aside as much as $7 billion, and the transaction is expected to be completed later in the first half of 2022.

With this move, the company will be able to increase share holder returns, by reducing its balance sheet. Although Scientific Games will continue to work on the allocation of capital and thus create value for shareholders, on the other hand, it will continue towards its goal – to become a globally leading cross-platform brand.

Recent Company News

Scientific games recently signed a deal with the Western Canada Lottery to launch its Single Game Sports Betting. This will give players a wider choice and improve their experience with new tools. Also, the brend was awarded a five-year contract by the Connecticut Lottery Corporation that will allow SGC to present its digital second-chance drawing platform and second-chance drawing services.

Source:

’’Scientific Games Withdraws Offer To Acquire Remaining 19% Equity Interest In Sciplay’’, scientificgames.com, 22. December 2021.

The post Scientific Games Gives Up on Buying 19% Capital Interest in SciPlay first appeared on RealMoneyAction.com.

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