Casino equipment and online games provider Light & Wonder Inc (L&W) has announced a new proposal to acquire the remaining 17 percent equity interest in digital gaming company SciPlay Corp that it does not currently own.
In the offer submitted to the board of SciPlay, Light & Wonder proposes to pay US$20.00 per share of SciPlay, in an all-cash deal valued at US$422 million, according to a Thursday press release.
If the deal is concluded, SciPlay would become a wholly-owned subsidiary of Scientific Games.
The transaction “would unify Light & Wonder businesses and balance sheet, accelerating the company’s cross-platform strategy, and optimising investment of capital,” stated the suitor.
According to the announcement, 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.
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.”
Mr Wilson stated his company would “not require any third-party financing to fully fund” the deal. He added that the firm does “not expect” the deal “to require any regulatory approvals or the approval of Light & Wonder’s shareholders”.
Currently, Light & Wonder owns approximately 83 percent of the economic interest and 98 percent of the voting interest in SciPlay.
Light & Wonder’s CEO also said the company would “not expect … to vote in favour of any alternative sale, merger or other corporate transaction involving SciPlay, nor divest or sell any portion of our ownership interest.”
This is Light & Wonder’s second try at buying the remaining stake in SciPlay. In December 2021, the company – previously known as Scientific Games Corp – withdrew an all-stock offer to acquire what at the time was a 19-percent remaining stake in SciPlay.
SciPlay was originally a wholly-owned subsidiary of then-Scientific Games, working as its social gaming arm. In 2019, the parent conducted an initial public offering of a minority interest in SciPlay.
Light & Wonder said on Wednesday it had received conditional approval from the Australian Securities Exchange for the company’s secondary listing on that bourse. The company reported a net profit of US$27 million in the three months to March 31, compared to a US$67-million loss in the prior-year period.
