GGRAsia – Sci Games Approaching Australia’s $ 3 Billion Lottery IPO: Report
Sci Games nears $ 3 billion lottery IPO in Australia: report
Casino slots, electronic table games, and online gaming content provider Scientific Games Corp are gearing up for an initial public offering (IPO) of its global lottery business on the Australian Stock Exchange, which could bring in around $ 4. billion Australian dollars (US $ 3 billion), Bloomberg reports, citing people said to have knowledge of the matter.
Out of all that Scientific Games seeks to raise, 1.3 billion Australian dollars would come from investors “cornerstone”, according to sources cited by the media.
The process of selling shares, valuing the lottery unit at about 14 times earnings before interest, taxes, depreciation and amortization (EBITDA), could begin this week, according to Wednesday’s report.
Scientific Games management has told potential investors that its instant games business has 69% of the US $ 101 billion market, according to the company’s presentations obtained by Bloomberg.
In June, Scientific Games, based in Las Vegas, Nevada, said it was consider relinquishing itself from the group’s lottery and sports betting units via either: a merger with an ad hoc acquisition company (SPAC); through sale; or through a strategic link with another company, as it was working to reduce its corporate debt.
Scientific Games has also made a proposal to acquire the 19% remaining a stake in digital games company SciPlay Corp, which it does not currently own.
As of June 30, the face value of Scientific Games’ long-term debt was $ 9.14 billion, according to its second quarter results, published in early August.
At the end of September, Scientific Games announced that it had reached an agreement to obtain $ 1 billion in cash and $ 200 million in shares of Endeavor Group Holdings Inc, a sports and entertainment company, for the latter to take control of Scientific. Games. OpenBet sports betting Platform.
In September of last year, it was revealed that control of Scientific Games was changing hands, with the sale of a 34.9% stake – which had been owned by financier Ronald Perelman – to other parties, including Caledonia, a global investment firm that had also at one time been an investor in Australian slot machine brand Aristocrat.
Following the deal, Jamie Odell, former managing director of Australian firm Aristocrat Leisure Ltd, was appointed executive chairman of Scientific Games.