Scientific Games Buy The Stars Group's Stake in NYX Gaming Group
Scientific Games has recently increased its stake in NYX Gaming Group, partly thanks to a transaction with the Canadian gaming company The Stars Group.
Last week, the Las Vegas-headquartered company that provides gambling products and services announced it had bought 36% of the NYX ordinary shares in a transaction worth a little over C$27 million. With this, Scientific Games, which prior to this held no stake in NYX, now has a 10.7% stake.
Increasing the Stake
The purchase also included share purchase warrants and exchangeable preferred shares, which could increase Scientific Games’ stake in NYX to 42.7%.
One of the sides involved in this transaction was the Toronto-based The StarsGroup, the company that produces and offers online gaming products and services including poker, casino, and sportsbook.
The Stars Group stated the company had managed to reach a deal with Scientific Games last week to sell it entire NYX Gaming Group stake. This includes 5.6 million ordinary shares, 40,000 preferred shares, and 1.36 million ordinary share purchase warrants, which in total represent 13.7% of the Las Vegas-headquartered digital gaming provider. According to the company, the NYX was sold for C$35.5 million.
Stopping William Hill From Blocking the Acquisition
The Canadian company will receive an additional payment if Scientific Games acquires all of NYX, if the NYX ordinary shareholders get C$2.40 per share, or if Scientific Games cancels the takeover and sells its stake in NYX for a price exceeding C$2.40 per share.
This somewhat aggressive acquisition of NYX Gaming Group shares is intended to prevent the U.K. side William Hill from blocking the acquisition itself. After William Hill announced such option existed, both Scientific Games and NYX had filed lawsuits against the bookmaker who holds around 32% of NYX shares.
NYX shareholders will vote on the acquisition plan on December 20.