Institutional investors, including Caledonia, to acquire 34.9% in Scientific Games at $28/share

Sep. 14, 2020 6:42 AM ETLight & Wonder, Inc. (LNW)LNWBy: Niloofer Shaikh, SA News Editor1 Comment
  • Institutional investors, including highly credentialed gaming industry investor Caledonia, to buy 34.9% stake in Scientific Games (NASDAQ:SGMS) from Ronald Perelman’s MacAndrews & Forbes for $28/share
  • The first tranche sale is expected to be completed today, and the transaction should be fully completed over the next several weeks, after which no investor is expected to beneficially own more than 9.9% of the outstanding shares of Scientific Games.
  • Barry Cottle, President and CEO of Scientific Games, said, "Scientific Games is well-positioned for future success given our industry leading portfolio of products and technologies, loyal customer base and talented leadership team. We are pleased to have the support of our refreshed Board and new investor base as we continue to execute on our strategy to drive meaningful long-term growth and shareholder value creation."
  • Former Aristocrat Chief Executive Officer Jamie Odell, along with former Aristocrat Chief Financial Officer Toni Korsanos, will join the Scientific Games Board as Executive Chair and Executive Vice Chair.
  • Jamie Odell said, "We will be highly focused on rapidly de-leveraging the balance sheet and creating a flexible, agile company that is poised to capitalize on evolving industry and macroeconomic trends to deliver outsized returns to investors."
  • The company expect capitals expenditures in the range of $210M-240M and positive free cash flow for FY2020.
  • With most casinos now reopened, the company now expects revenues to increase from Q2 results.
  • Shares up 18% premarket.

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