Global supplier to the gaming industry, Light & Wonder, Inc has submitted a proposal to the Board of Directors of its social casino arm SciPlay Corporation to acquire the remaining 17% equity interest it does not currently own for a total consideration of US$422 million.
The all-cash offer, representing a price of US$20.00 per SciPlay share, is seen by Light & Wonder as a means of unifying its businesses by combining their respective balance sheets and “enabling seamless collaboration with SciPlay that will add further momentum to the company’s already robust cross-platform strategy,” Light & Wonder said.
The proposal mirrors a similar offer by Light & Wonder in 2021 to acquire all outstanding SciPlay shares – an offer that was ultimately withdrawn in December of that year after meeting resistance.
In a letter sent to the SciPlay Board of Directors this week, Light & Wonder’s President and CEO, Matt Wilson, said the proposed transaction offers SciPlay’s public shareholders a “compelling combination of value, speed and certainty.
“SciPlay’s public shareholders would receive an immediate and certain premium value for their shares in cash, obtaining liquidity and de-risking their investment in a volatile and uncertain market,” he states.
“Light & Wonder will not conduct due diligence and we do not expect consummation of the Transaction to require any regulatory approvals or the approval of Light & Wonder shareholders, simplifying and expediting closing the transaction. Further, Light & Wonder will not require any third-party financing to fully fund the transaction.
“Through our existing collaboration with SciPlay, we believe the Ttansaction would be operationally seamless, and we look forward to fully joining forces with SciPlay’s talented leadership team and employees to continue innovating on behalf of customers and players.
“Currently, Light & Wonder owns approximately 83% of the economic interest and 98% of the voting interest in SciPlay. In considering this proposal, it should be noted that, in our capacity as a shareholder of SciPlay, we are interested only in the transaction specified above with respect to the publicly traded shares of SciPlay and intend to vote in favor of such Transaction. We would not expect, in our capacity as a shareholder of SciPlay, to vote in favor of any alternative sale, merger or other corporate transaction involving SciPlay nor divest or sell any portion of our ownership interest.”
The proposal implies an enterprise value of US$2.1 billion for SciPlay and a premium of 28.5% based on SciPlay’s closing stock price as of 17 May 2023.
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