Gaming supplier International Game Technology (IGT) confirmed on Monday in a statement that it might be sold. Reuters reported last week that the company had hired investment bank Morgan Stanley to field offers from suitors.
In Monday’s statement, IGT said it regularly considers a broad range of strategic alternatives, including “business combinations, changes to capital structure and adjustments to portfolio of businesses, with the goal of maximising shareholder value”.
“The IGT board of directors and senior management are currently engaged in such an exploration, but no decisions have been made by the board regarding any particular alternative available to the company,” it said.
On Friday, Reuters reported that at least four firms were pursuing a bid for IGT, including lottery operator GTech SpA and private equity firm Apollo Global Management LLC, co-owner of casino operator Caesars Entertainment Corp.
But no approach has been confirmed by IGT. The company said: “There can be no assurances that any transaction or other strategic change will be entered into as a result of the current exploration of alternatives.”
Analysts say a potential sale might be positive given the company’s valuation discount to peers and its history. U.S.-based Telsey Advisory Group said a strategic industry buyer could mean a higher bid for IGT.
“We estimate a prospective suitor could pay around US$17/share for IGT in an LBO [leveraged buyout] and still generate a levered IRR [internal rate of return] of 25 percent, valuing the company at US$6 billion,” the brokerage said in a report.
Dec 13, 2018Perception of quality of life among a sample of Macau’s casino dealers and staff employed in casino cage operations is that they have a worse time than people in other casino jobs, according to a...
Dec 13, 2018
Dec 13, 2018
"The MSAR [Macau Special Administrative Region] Government is always maintaining its policy not to have imported labour to work as dealers. This position has not changed"
Lionel Leong Vai Tac
Macau’s Secretary for Economy and Finance