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
believe
s
the online betting se
c
tor 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.”