GGRAsia – GTech owners against IGT deal held under fifth of stock

GTech owners against IGT deal held under fifth of stock

Dec 02, 2014 Newsdesk Industry Talk, Latest News, Top of the deck

Lottery equipment and management specialist GTech SpA said shareholders revealing themselves as dissenters to its planned merger with U.S.-based slot machine maker International Game Technology (IGT) account for under 20 percent of GTech’s stock. Shareholders had until November 27 to sell their holdings back to GTech prior to the planned merger.

“Based on the communications received from the custodians, GTech believes that cash exit rights have been exercised for less than 20 percent of the company shares outstanding as of July 15, 2014, when the agreement for the acquisition of IGT was executed,” the firm said in a statement on Tuesday.

GTech said it would publish final details on the exercise of the so-called exit rights on December 12.

The Italian company is acquiring IGT for US$6.4 billion, comprised of US$4.7 billion in cash and stock, and the assumption of US$1.7 billion in net debt.

Following the deal, shareholders of GTech last month approved the merger of the firm into a subsidiary called Georgia Worldwide Plc.

Georgia Worldwide will become the parent holding company for the combined operations of GTech and IGT, with its registered office in London. The group will be listed in the New York Stock Exchange.

The transaction is still expected to be completed in the first half of 2015.