M&A activity, New York casinos, Crown, Star & UKGC: the week in figures
Each week, CasinoBeats details the numbers behind some of the industry’s most interesting stories. In our latest edition, we feature an array of M&A activity that has made headlines, including Aristocrat, DraftKings, and Penn National Gaming; Crown and Star Entertainment Provide Updates in Australia; and the UKGC issuing a license suspension.
Game manufacturer listed in Australia Aristocratic hobbies is to buy the European gaming giant Playtech after making a cash offer valuing the company at £ 2.7bn, a 58% premium on its closing price.
Playtech’s board of directors unanimously recommended that shareholders vote in favor of the transaction in a year that has seen an unprecedented level of M&A activity. Aristocrat plans to fund the deal with a £ 864million fundraiser, along with new debt and existing cash.
Aristocrat believes deal will bring significant scale to online gaming, increase revenue, reach a wider range of customers and “operate and innovate” in the European market through Playtech Snaitech B2C operation.
The offer represents a valuation multiple of 11.4x Playtech’s adjusted EBITDA for the 12 months to June 30, 2021, and Aristocrat has already entered into deals with major shareholders for just over 20% of Playtech’s outstanding shares.
DraftKings said he was eager to further explore the potential benefits of a $ 20 billion takeover of Entain, after a deadline for reaching a final agreement on such a move was extended.
The playgroup has confirmed that its “Put Up or Shut Up” deadline must now be set no later than 5 p.m. on November 16, 2021, when Draftkings must announce a firm intention to make an offer or it does not. . This period may be further extended with the agreement of the College of Acquisitions and Mergers, at Entain’s request.
Issues that Entain described as “fundamental” to the value of the proposal include creating total value for Entain shareholders, including synergy actions; the governance and management composition of the potential combined entity; and the deliverability of such a transaction, including antitrust and regulatory clearances.
In addition, the status of BetMGM, which Entain operates as an American subsidiary in collaboration with MGM Resorts, was also cited as an issue requiring further clarification.
Penn National Gaming underlined the enthusiasm for “creating this powerful new entertainment flywheel”, after finalizing the purchase of Score media and games in a $ 2 billion cash and stock transaction.
The deal was originally slated for completion in the first quarter of 2022 after it was first detailed in August. However, following recent approvals, including that of the Supreme Court of British Columbia, this date has been significantly advanced.
The deal saw Score shareholders receive $ 17 in cash and 0.2398 PNG common stock for each share, implying a total purchase consideration of $ 34 per share based on a weighted average price in based on five-day volume as of July 30, 2021.
Current shareholders of PNG and Score will own approximately 93% and 7% of the company’s outstanding shares, respectively.
The Featured Entertainment Group has released an update to potential class action reports as the group Sydney Star the review is updated to allow for public hearings.
This means that the review, which was first announced last month to determine whether the company is fit to maintain its casino license in the state, will now be heard publicly.
The review, which examines how well The Star is complying with its legal obligations and whether it remains fit to hold its license, began after Adam Bell was appointed by the Independent Authority for Alcohol and Gaming.
Bell, the senior senior counsel who attended the Bergin inquiry into Crown Resorts, informed ILGA that he considered it to be in the public interest to hold public hearings on matters including, but not limited to s ” limit, the maintenance and administration of anti-money laundering systems by The Star. and infiltration by organized crime.
ILGA, which has said it “fully supports” Bell’s decision, expects the hearing to take place in March 2022. The publicly available report will be due to ILGA by the 30th. June 2022.
The UK Gambling Commission issued an immediate suspension of the operating license of BGO Entertainmentbecause the regulator is undertaking a review under section 116 of the Gambling Act 2005.
This, the UKGC said, occurs when activities may have been carried out against the law, not in accordance with the terms of their license, and the license holder may be unfit to perform the licensed activities. Failure to protect consumers was a key consideration in the suspension decision, he adds.
The suspension, which was authorized under section 118 (2) of the law, does not prevent the operator from allowing consumers to access their accounts and withdraw funds. BGO Entertainment operates bgo.com, m.bgo.com, powerspins.com, vegasluck.com and chili.com.
The New York Gaming Commission issued a request for information to assess the operator’s interest in the development and / or operation of one of the three casinos in the city region.
This is intended to inform the Commission for the purpose of determining the appropriate size and scope of development, the value of the game installation license and the process that should be used in considering award.
Under state law, the regulator can continue development of three casinos in upstate New York after an earlier policy by former Governor Andrew Cuomo pushed for the addition of sites to games in the north of the state with the aim of creating jobs and reducing unemployment in disadvantaged areas.
The deadline for submitting questions is November 10, 2021, and final submissions must be submitted by December 10, 2021. The Commission is obligated to prepare and distribute a report with the results of the RFI to the governor and to state legislature no. six months after receiving this information.
Crown hotels confirmed the appointment of Steve mccann as CEO and Managing Director, before the struggling casino operator updated stakeholders at its 2021 AGM.
McCann’s recruitment, which was first detailed on May 10, 2021, was finalized after all necessary regulatory approvals were received.
Following the confirmation, McCann addressed stakeholders at the firm’s AGM, saying “we need to do things differently from how they have been done in the past.”
“This is my first opportunity to speak directly to shareholders at an annual Crown meeting,” McCann began.
“Running a business like Crown comes with responsibility and scrutiny – never more than it does now. In the nearly five months since joining Crown, I have learned to better understand the challenges the organization faces.
“While we have a lot of hard work ahead of us, Crown’s board of directors and management are committed to restoring the reputation of the organization and generating appropriate return for shareholders in a responsible manner.”