GGRAsia – IGT shareholders get more cash from GTech merger

IGT shareholders get more cash from GTech merger

Apr 03, 2015 Newsdesk Industry Talk, Latest News

The shareholders of Nevada-based slot machine maker International Game Technology (IGT) will be entitled to more cash than initially estimated from the merger with Italy-based GTech SpA, a global supplier of technology and services to the casino and lottery industries.

The two firms on Thursday announced that IGT shareholders would be entitled to receive US$14.3396 in cash plus 0.1819 ordinary shares of the newly formed holding company for each share of IGT common stock.

GTech shareholders will receive one ordinary share of the new firm for each share of GTech.

Shares in the new entity, to be called International Game Technology Plc, will start trading in the New York Stock Exchange under the “IGT” ticker symbol on April 7.

The final per share merger consideration payable to IGT shareholders was determined pursuant to “the calculation of the ‘Gold Share Trading Price’ of US$20.2379, wherein an average U.S. dollar converted volume-weighted average price (VWAP price) for GTech shares was calculated from 10 trading days selected randomly from a 20-trading day window,” IGT and GTech said in a statement.

When the US$6.4-billion cross-border merger was first announced in July last year, it was estimated that IGT shareholders would receive US$13.69 in cash plus 0.1819 ordinary shares of the new company for each share of IGT common stock.

GTech’s shares will cease trading on the Italian Stock Exchange as of Friday.

“The merger will become effective at 12.01am GMT on Tuesday, 7 April 2015, and immediately thereafter the acquisition of U.S.-based IGT will be completed,” GTech said on Wednesday.