Bally’s confirms agreement reached to acquire Gamesys
In a joint statement, Bally's and Gamesys revealed that last month their boards had reached an agreement where Bally’s Corporation would acquire Gamesys.
The combination will be finalised by Bally’s subsidiary Premier Entertainment, which will help finance the cash deal.
Bally’s will pay 1,850 pence ($25.46) per Gamesys share, which represents approximately a 14.4% premium on Gamesys’ closing price of 1,642 pence per share on March 23 this year.
When Bally’s made the initial proposal in January, Gamesys’ closing price per share was at 1,330 pence, which would see a 41.2% premium and a 36.7% premium for the three-month average closing price to March 23.
Neil Goulden, chairman of Gamesys, said: “The combination would give unique optionality to Gamesys shareholders. The recommended cash offer, including the Gamesys final dividend, provides a 41.2% premium to the Gamesys share price at the time of the original proposal from Bally’s and is at a significant premium to the all-time high Gamesys share price prior to the 2.4 announcement.
Bally’s chairman, Soo Kim, added: “We believe that this combination will mark a transformational step in our journey to become a leading integrated, omni-channel gaming company with a B2B2C business.
“We think Gamesys’ proven technology platform alongside its highly respected and experienced management team, combined with the US market access that Bally’s provides, should allow the combined group to capitalise on the significant growth opportunities in the US sports betting and online markets.”
If the merger is not completed by the ex-dividend date of September 9 2021, the Gamesys Board will declare a second interim dividend. The first dividend would be 28 pence per share but the second will equate to 15 pence per share.
In the statement, Bally’s said it believes the online betting sector in the US is growing and believe striking a deal with an established US brand will take advantage of these growth opportunities.
Bally’s believes the “combination represents a compelling strategic and financial opportunity to improve the offering and experience for customers.”
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