Casino Machine Maker Science Games Australia Lottery IPO Almost $ 3 Billion

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(Bloomberg) – Scientific Games Corp., a maker of casino slots, to launch first Australian public offering of its global lottery business that could raise around A $ 4 billion ($ 3 billion) , according to people familiar with the matter.

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The Las Vegas-based company plans to raise at least A $ 1.3 billion from key investors and the rest from others, the people said, asking not to be identified as the information is private. The process of selling shares, valuing the unit at around 14 times EBITDA, could begin as early as this week, they said.

In a June statement, Scientific Games said it plans to divest its lottery and sports betting units through a merger with a specialist acquisition company, sale or strategic combination with another company, in the part of a debt control process. He later agreed to sell his sports betting company OpenBet to Endeavor Group Holdings Inc. for $ 1.2 billion in cash and shares.

Scientific Games could decide to pursue an alternative strategic option and there is no certainty that it will proceed with a listing, the people said. A representative for the company declined to comment.

A stock sale of this magnitude by the seller of state lottery tickets and scratch cards sold in more than 50 countries would make it Australia’s biggest float since 2014, when health insurer Medibank Pvt. raised A $ 5.7 billion, according to data compiled by Bloomberg.

The current quarter has been rich in local offers. Planned or priced IPOs include a sale of A $ 653 million by small business lender Judo Capital, A $ 1.3 billion by investment boutique GQG Partners Inc and A $ 371.6 million by the steel distributor Vulcan Steel.

The lotteries unit’s IPO plan follows the buyout last year of billionaire Ronald Perelman’s 34.9% stake in Scientific Games by a group of investors led by Sydney-based Caledonia.

Scientific Games management has told potential investors that its instant games business has 69% of the $ 101 billion U.S. market, according to the company’s presentations obtained by Bloomberg News. The company’s U.S. retail solutions and systems business dominates about a third of a $ 184 billion market, and its iLottery business accounts for a 13% share of a $ 26 billion space. , according to the company.

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