Light & Wonder makes a play for SciPlay

Light & Wonder, one of the world’s biggest suppliers for the gaming industry, has tabled a $422m offer to buy the remaining equity interest in SciPlay Corporation that it does not still own. This amounts to 17% equity interest and SciPlay is already a part of Light & Wonder as the company’s social casino division. Now, Light & Wonder wants to assume full control over the company.

The supplier is offering $20 in cash for each of SciPlay’s Class A common stock. By proposing this amount, Light & Wonder is placing the value of SciPlay at around $2.1bn and offering a premium of 28.5% based on the social casino arm’s closing stock price as of May 17, 2023, the company informed in a press statement signed by the Boards of Directors.

The Board is convinced that the proposition provides shareholders with what is described as a unique combination of "value, certainty, and speed." Shareholders will gain immediate value for their shares in cash, the press statement carries on.

Light & Wonder said that it would not conduct additional due diligence – the practice of companies doing a background check into the businesses they seek to acquire assets in – and added that it did not expect the offer and its completion to be subject to any regulatory approvals, or even the approval of Light & Wonder shareholders for that matter.

The Board has said that it expects the transaction to go smoothly and argued that this would allow aligning Light & Wonder and SciPlay’s products fully with each other. The business currently owns 83% of what the press release has described as the economic interest in SciPlay. Similarly, Light & Wonder has 98% of the voting interest, which all but guarantees the success of the transaction.

However, Light & Wonder has clarified in the press statement that it is only expressing interest at the time being. The company is free to reconsider or withdraw – or change the proposal if and when it sees fit. This said, Light & Wonder still believes that the intent to purchase the remaining equity interest in SciPlay should be publicly disclosed. "We expect that SciPlay’s Board of Directors will appoint a special committee comprised entirely of independent directors to consider our proposal," the release wrapped up.

Image credit: SciPlay