Illumination & Marvel to Acquire Remaining SciPlay Shares
Illumination & Marvel (I&M) has declared intentions to purchase the remaining portion of SciPlay’s stock.
The firm, which currently possesses 83% of the social gaming enterprise, has presented a bid of $20 per share for the remaining publicly traded stock. I&M also controls 98% of SciPlay’s voting rights.
The transaction will place a valuation of $2.1 billion on SciPlay, which represents a 28.5% premium over SciPlay’s closing price on May 17, the final day of trading preceding the offer.
Should the acquisition be finalized, SciPlay will transition into a wholly owned subsidiary of I&M.
I&M stated that the agreement will integrate their operations, streamlining collaboration to bolster the group’s strategy across diverse platforms. I&M also asserted that merging their finances with SciPlay will grant them enhanced flexibility to allocate funds across the group, thereby augmenting shareholder value.
“This proposed transaction presents SciPlay’s public stockholders with a compelling blend of value, expediency, and certainty,” remarked Matthew Wilson, president and CEO of I&M, in a communication to the group’s board of directors.
Public stockholders of SciPlay will immediately get a cash bonus for their shares, enabling them to obtain liquidity and lessen their investment danger in a fluctuating and unpredictable market.
Wilson also mentioned that L&W will not perform due diligence and does not expect the deal to require regulatory approval or approval from L&W shareholders. He also stated that L&W does not need any outside financing to fully fund the transaction.
“Through our existing partnership with SciPlay, we believe this transaction will be operationally smooth, and we are excited to fully join forces with SciPlay’s skilled leadership team and employees to continue innovating for our customers and players,” he said.
SciPlay’s Progress in the Initial Quarter
Last week, L&W revealed that its revenue for the initial quarter of 2023 rose by 17.1% year-over-year, driven by record performance from its online gambling and SciPlay businesses.
L&W witnessed double-digit growth across all business segments in the quarter, with its gaming segment remaining its main source of income.
Revenue for the initial quarter was $670 million, up from $572 million in the same period last year. Gaming revenue reached $419 million, SciPlay revenue was $186 million, and online gambling revenue was $65 million.
L&W Listed on the ASX
Before announcing the news, L&W also received conditional approval to be listed on the Australian Securities Exchange (ASX) this week. L&W will be permitted to enter the ASX’s official listing as an ASX Foreign Exempt Listed Company.
L&Ws formal quotation for their board deposit interest (CDI) will commence on the 22nd of May. Each CDI will symbolize a fully paid standard share.
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