Entertainment Gaming Asia, a provider of gaming services in the Philippines and Macau, is set to go private following the completion of a cash tender offer from Melco International Development Ltd for all of the issued and outstanding shares of common stock.
The offer, announced by Melco International Development’s wholly-owned subsidiary EGT Nevada Holding, saw a total of 4,005,135 shares, representing 92.53% of the outstanding shares, tendered. According to the terms of the offer, EGT Nevada will deliver payment for the shares validly tendered and not properly withdrawn prior to the expiration date as promptly as practicable.
EGT Nevada said it intends to affect a “short-form” merger which will see it merged with and into Entertainment Gaming Asia, which will continue as a wholly owned, indirect subsidiary of Melco International.
Entertainment Gaming Asia will become a privately-held company with its stock to cease trading on the NASDAQ Capital Market and be delisted.
Melco International Development, which already held 65% of shares in Entertainment Gaming Asia, will acquire the shares at a price of US$2.35 net per share.
Entertainment Gaming Asia reported a 31% decline in year-on-year revenue for the first quarter of 2017, down from US$604,000 to US$416,000, largely due to the expiration of its EGM leasing agreement with Leisure World VIP Slot Club on 30 June 2016 and lower average daily net win per unit.
