Scientific Games turns to plan B for NYX takeover
Provider starts buying up ordinary shares in NYX through the stock market to circumvent William Hill’s objection to the deal
Scientific Games has started a back-up plan for its acquisition of NYX, announcing it will simply purchase more than 50% of the shares in the provider should its proposed takeover fall through.
The original takeover is in danger of being blocked by William Hill, which said it wants to protect its relationship with chief technology provider OpenBet.
However SG announced yesterday that if the deal is blocked, it will commence a “contractual takeover offer to NYX shareholders”, essentially buying at least 50.1% of the ordinary shares in NYX through the open market.
Hills will own around 30% of the company once its convertible bonds are converted to shares.
“This reaffirms the companies’ commitment to move forward together,” a statement from SG noted.
And following the announcement, SG immediately purchased 11.6 million ordinary shares of NYX, representing around 11% of the company.
The shares were purchased through the TSX Venture Exchange at prices ranging from CAD$2.22 to CAD$2.35, representing an aggregate purchase price of CAD$27m (£16m).
The new approach adds another element to an increasingly complex legal battle between SG, NYX and Hills.
William Hill said it will continue to assert its rights as major shareholders in NYX.