Entertainment Gaming Asia Inc – a gaming operations company that leases slot machines on a revenue-sharing basis in the Philippines – has confirmed that Melco International Development Limited, through its wholly-owned subsidiary EGT Nevada Holding Inc, has commenced an unsolicited cash tender offer to acquire all outstanding shares of common stock.
The offer would see Melco International, which already owns a 65% stake in the company, obtain remaining shares at a price of US$2.35 net per share.
In a NASDAQ listing, Entertainment Gaming Asia said its Board of Directors, “is carefully reviewing and considering, in consultation with its advisors, all aspects of the Offer so that the Board can determine whether the Board recommends acceptance or rejection of the Offer, remains neutral with respect to the Offer, or is unable to take a position with respect to the Offer.”
The Board will file its decision on or before 19 May, it said.
Entertainment Gaming Asia last week reported a 31% decline in year-on-year revenue for the first quarter, down to US$416,000 from US$604,000, 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.
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