Issuing a market note, Nasdaq-listed gambling technology group Scientific Games Corporation (SGC) has moved to acquire 11.6 million ordinary shares in acquisition target NYX Gaming Group.
The transaction represents approximately 10.72% of NYX’s current shareholding, with SGC governance paying CAD$2.22-2.35 per share, representing a purchase price of circa CAD $27 million (£18 million).
Further to today’s share purchase transaction, SGC governance has further detailed that it has agreed to amend its takeover proposal of Toronto TSX-listed NYX Gaming.
Agreeing terms, NYX governance has dropped deal provisions set on 20 September, requiring SGC to acquire ‘at least 75% of shares’ in the company to complete its acquisition.
Under a new arrangement, SGC and NYX governances have “agreed that should the acquisition of NYX by Scientific Games not be approved by shareholders at pending vote in December or not move forward for other specified reasons, Scientific Games will commence a contractual takeover offer to NYX shareholders.”
In its market update, SGC governance states that its share purchase reaffirms its commitment to move the acquisition of NYX Gaming forward following a recent standstill.
SGC’s planned $630 million takeover of NYX hit a roadblock this November when NYX minority shareholder William Hill Plc demanded to convert its ‘preference shares’ gained through co-funding NYX’s £270 million buyout of OpenBet technologies in 2016.
William Hill states that should its ‘preference shares’ be converted (no later 4 December), the FTSE bookmaker would have an aggregate 31.9% equity in NYX Gaming, gaining a significant vote on the sale of NYX.
SGC and NYX have filed individual lawsuits against William Hill, stating that the company is in breach of ‘attempting to stifle competition in the US gambling market’, and in further contravention of existing US anti-trust laws.
William Hill refutes the charges relating to US competition laws. The company states that it is reviewing the SGC’s takeover of NYX Group, but has made no formal decision with regards to its position.
Source: SBC News
