NeoGames' shareholders greenlight takeover bid by Aristocrat

In May this year, the Australian gambling giant, Aristocrat Leisure Limited, announced its plans to acquire the globally recognized gaming platform operating from Luxembourg, NeoGames S.A. Now, Aristocrat confirmed Wednesday that the acquisition secured approval from NeoGames' shareholders. This new approval represents an important part of the acquisition process, and it is the first out of two that are needed. Additionally, the company confirmed that the shareholders greenlighted the "statutory continuation of NeoGames from Luxembourg to the Cayman Islands," a statement reveals.

Judging by Aristocrat's recent statement, the aforementioned continuation is subject to meeting certain conditions. Such include the regulatory approvals for all relevant processes, including foreign investment, gaming and antitrust operations. According to the Australian gaming giant, the approvals are "progressing well" which is in line with their expectations.

Aristocrat explained: "Completion of the proposed acquisition will occur by way of a merger of a wholly owned subsidiary of Aristocrat with NeoGames which will take place following the Continuation and the satisfaction of certain conditions, including approval by NeoGames shareholders holding at least 66.7% of the shares entitled to vote and present or represented at the second shareholder meeting."

The gaming company said that it continues to collaborate with NeoGames for the billion-dollar acquisition. While the duo remains committed to ensuring the success of the proposed acquisition, Aristocrat confirmed that it anticipates seeing the process completed at some point in FY24.

The acquisition deal with a price tag of $1.2 billion, seeks to help Aristocrat extend its presence beyond the land-based sector and enter the fast-growing iGaming vertical. In addition to expanding into the iGaming sector, the strategic acquisition is also expected to boost Aristocrat's presence in strategic regulated gambling markets, including North America and Europe, among others.

Upon the initial announcement about the takeover, NeoGames' Chief Executive Officer, Moti Malul, commented: "I am tremendously proud of our entire team at NeoGames, as together we have established our leadership position, driving our success across iLottery, iGaming, and online sports betting." He said that the company is delighted to see that Aristocrat recognizes the potential of NeoGames. Additionally, Malul acknowledged that the acquisition represents a "strategic opportunity to combine our complementary businesses." Finally, NeoGames' boss predicted that the acquisition will bring benefits for NeoGames' employees, shareholders, as well as customers.

The $1.2 billion price tag for the acquisition represents $29.50 per share in cash. NeoGames selected Latham & Watkins LLP and Herzog Fox & Neeman as legal counsel for the strategic transaction, while Stifel is acting as the company's financial advisor for the billion-dollar deal.

Image credit: Pixabay.com