Billionaire Ronald Perelman is set to sell his stake in Scientific Games to a group of investors that includes gaming investment firm Caledonia.
Scientific Games (SGMS) shares were spiking on Monday as soon as the company announced that a number of long-term institutional investors, including Caledonia have agreed to acquire a 34.9% stake in Scientific Games from MacAndrews & Forbes Incorporated.
The billionaire Ronald Perelman has decided to sell his 34.9% stake in Scientific Games to the gaming industry investor Caledonia. The transaction will take part at a per share price of $28 as per the signed agreement.
In addition, the company will also make a series of governance changes and enhancements, which includes changing of its Board of Directors (BoDs) and termination of the Stockholders Agreement with MacAndrews & Forbes. SGMS wants to give importance to its new investor base in order to continue the firm’s growth and value creation.
The company mentioned that it intends to add three new directors to BoDs replacing MacAndrews & Forbes representatives, including Mr. Perelman.
The President and CEO of Scientific Games, Barry Cottle highlighted that they are in a good position to change its Board directors given the industry-leading portfolio of products and technologies, skilled leadership team, and loyal customer base. Barry added:
“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.”
Scientific Games focus is to further improve its stance in the gaming industry, specifically on digital gaming and sports betting opportunities. As gaming industry revenues continue to recover, the company bets to benefit from a renewed wave of growth given its position at the forefront of the rapidly expanding digital gaming and sports betting ecosystem and SGMS’s vast portfolio of original content and licensed brands.
The company is committed more than ever to maintain a strong position as the preferred partner to sports betting operators and leading casinos across the globe. SGMS wants to achieve this milestone by delivering unparalleled customer service and providing leading technology and product portfolio.
Scientific Games stock pumped as high as 51.7% on Monday after getting a positive response from the investment community upon 34.9% stake transfer from MacAndrews & Forbes Incorporated to Caledonia.
As of today, at 1:14 P.M. EDT, Scientific Games (SGMS) was trading at $29.78 carrying the bullish momentum up by almost 12.71%.