Light & Wonder has announced a plan to buy the remaining shares of SciPlay. The price is $422m. (PS340m/EUR392m).
The proposed acquisition will cost $20 per share. L&W has also 98% of SciPlay’s voting shares.
The consideration would be based on an enterprise value for SciPlay of $2.1bn and a premium based on SciPlay’s closing stock price on the 17th of May, the final trading day prior to the proposal.
If the acquisition goes through as planned, SciPlay will become a fully owned subsidiary of L&W.
L&W said that the deal will unify their businesses and allow seamless collaboration in support of the group’s multi-platform strategy. L&W said that the combined balance sheet of SciPlay and L&W would allow them to invest cash in other areas to increase shareholder value.
SciPlay shareholders get value for their money
In a letter addressed to the board of directors, L&W’s president and chief executive Matthew Wilson stated that “the proposed transaction offers SciPlay public shareholders an attractive combination of value and speed, as well as certainty.”
“SciPlay’s public shareholders will receive an immediate, certain and premium cash value for their shares. This would provide liquidity to their investments and reduce their risk in a volatile market.”
Wilson said that L&W would not be conducting due diligence, and he does not anticipate the transaction requiring regulatory approvals or approval from L&W’s shareholders. Wilson said that L&W would not need any third party financing to fund the transaction.
He said: “Through our collaboration with SciPlay we believe that the transaction will be seamless and we look forward joining forces with SciPlay’s talented leadership team to continue innovating for customers and players.”
SciPlay’s growth in Q1
L&W announced last week a 17.1% increase in revenue year-on-year for the first quarter of 2023. This was aided by record performances from its igaming division and SciPlay.
L&W’s gaming division was its main revenue source, and it grew by double digits across all of its segments.
The first quarter revenue was $670m, compared to $572m for the same period last year. Gaming revenue was $419m. SciPlay brought in $186m. Igaming generated $65m.
L&W ASX Listing
L&W also received conditional approval this week for a secondary listing at the Australian Securities Exchange. L&W is allowed to be listed on the ASX official list as an ASX foreign exempt listing.
The official quotation of L&W Chess depositary interests (CDIs), each CDI representing one fully-paid share of common stock, is scheduled to begin on 22 May.