Las Vegas based gaming technology supplier Scientific Games Corporation has today announced the purchase of 10.72% worth of stock in fellow gaming company NYX Gaming.
The company purchased 11,600,000 ordinary shares in NYX at prices ranging from CAD$2.22 to CAD$2.35 per share at an approximate total cost of CAD$27m. Prior to the transaction, Scientific Games did not own either directly or indirectly any ordinary shares in NYX Gaming.
Scientific Games and NYX Gaming have also made an amendment to their proposed merger agreement stating that in the event that the acquisition of NYX Gaming not is approved by its shareholders, Scientific Games will make a contractual takeover offer for the business at the same initial acquisition cost of $631m.
NYX have also agreed to waive the existing standstill with Scientific Games contained in the agreement between Scientific Games and NYX so that Scientific Games and its affiliates could purchase any ordinary, preferred or other equity securities of NYX or any of its subsidiaries.
In a statement announcing the move, Scientific Games have stated that the move “reaffirms the companies’ commitment to move forward together.”
The move follows bookmaker William Hill filing a request with NYX Gaming that its convertible preference shares be converted into ordinary shares of NYX Gaming no later than 4 December, 2017, to enable William Hill to vote in connection with the proposed $631m acquisition by Scientific Games. Any conversion would give William Hill 32% voting stock in NYX Gaming, allowing it to do so.
Reports have said that shareholders in NYX, including William Hill itself will lose an estimated $50m by exercising this conversion option; however William Hill is reportedly willing to take that loss in order to maintain a stake in NYX ahead of a potential decision on the future of US sports betting.
Both Scientific Games and NYX Gaming are at loggerheads with William Hill over the proposal and have filed anti-trust lawsuits against the bookmaker, claiming that it is aiming to stymie competition in the US gaming industry.