The global gaming provider that develops system and content, as well as hardware, connecting iconic titles on all channels, has sent a proposal to its board of directors .
If the proposal is accepted and received, SciPay will become Light & Wonder ‘s wholly owned subsidiary.
All Cash Transactions at $20 Per Share
In the acquisition proposal Light & Wonder ” was pleased to propose“, it mentions a merger in which SciPlay’s stockholders, as opposed to Light & Wonder or its subsidiaries, would receive 20 dollars per share of SciPlay Class A Common Stock.
The online casino would have an enterprise value of $2.1 Billion and a premium of 28,5% based on the closing stock price on May 17, 2023 which was the final trading day before the proposal was officially made.
If Light & Wonder were to acquire the remaining equity interest of 17% that it currently does not possess, the company would have to pay a total amount of $422,000,000. Light & Wonder views the offer as a means to bring its businesses together through a merger of their balance sheets.
The company also expects that the transaction will trigger a “seamless partnership with SciPlay”, which would give more momentum to the cross-platform strategy, which has always been well-developed.
The acquisition, if approved, would allow for greater flexibility in investing cash throughout the company, thereby generating value for the shareholders. The company reported a 17% growth in consolidated revenue at the beginning of March. This was expected to help it achieve its growth goals.
A similar Acquisition Proposal in 2021, Rejected
The company has made an effort similar to the current one to purchase the remaining shares of SciPlay in 2021.
The proposal was withdrawn by the board in December that same year, because it encountered resistance.
Light & Wonder currently owns approximately 83% and 98% SciPlay’s voting interests.
Matt Wilson , Light & Wonder’s Chief Executive Officer, explained that SciPlay’s shareholders would benefit from a mix of “compelling”, certainty, speed and premium value.
Wilson explained that in order to simplify the process and accelerate the transaction, the company will not be asking for approvals from shareholders or regulators.
Light & Wonder used the letter to SciPlay Corporation’s board of director to explain that they, as shareholders of SciPlay Corporation, would not vote for any alternative mergers, sales, or other types of corporate transactions regarding SciPlay or proceed to divest or sell any part of its ownership interests.
The company announced at the end of April that would be expanding its OpenGaming Content with Rogue Games.