Scientific Games Purchase NYX Shares After William Hill’s Threats To Torpedo Acquisition
The proposed acquisition of NYX Gaming by Scientific Games has not gone smoothly to say the least. We have covered the story including the role of William Hill in the last few weeks. Earlier this month we reported on William Hill looking into the possibility of blocking the deal as they had shares in NYX Gaming. Their 6,800,000 ordinary shares in NYX and £80m of preference shares of NYX Digital Gaming were set to be used as leverage if the deal was not in the interest of William Hill.
To overcome this problem Scientific Games announced they have acquired approximately 10.72% of the issued and outstanding ordinary shares in NYX Gaming Group.
In terms of an amendment to the deal, both companies agrees that should the NYX shareholders not approve the acquisition set for next month Scientific Games will then make a contractual takeover offer y NYX shareholders for the same price.
In order to facilitate the deal Scientific Games and NYX Gaming have also agreed to waive the existing standstill in their agreement which would enable Scientific Games to purchase any NYX equity or preferred securities.
This latest legal maneuvering seems to pave the way for the acquisition to go through and be finalized by next month’s meeting.