William Hill Could Prevent Scientific Games Acquisition Of NYX
The proposed acquisition of NYX gaming By Scientific Games may not be finalized according to reports. The acquisition of NYX by Scientific Games raised more than few eyebrows when announced a few months ago, William Hill contributed around £90m to the £270 m price that NYX Gaming paid to acquire sports betting technology firm OpenBet in April 2016. William Hill use the OpenBet platform for their sports betting solution and their investment at the time was aimed at ensuring they were maintained as a priority customer for OpenBet.
Yesterday saw Toronto based NYX say that a division of William Hill had put in a request to convert their NYX convertible preference shares into ordinary shares by December 4. This is in time for the scheduled vote on the Scientific Games proposed purchase of NYX on December 07.
In response to the move by Hills, NYX said that it remains focused on the Scientific Games deal but in light of the move by Hills was considering “ bringing appropriate legal action or actions against William Hill to protect NYX shareholder.
Following these latest development NYX shares took a div of over 15%. Hills in response to NYX aggressive approach released a statement saying that it “notes the announcement by NYX earlier today of its apparent determination to frustrate the contractual rights William Hill obtained when it enabled NYX to purchase OpenBet. To correct two assertions made in the NYX announcement, William Hill is considering the proposed acquisition of NYX by Scientific Games Corporation and no decision has been made at this time, and William Hill refutes in the strongest terms that any anti-competitive measure have been requested or is being demanded. William Hill confirms that it has issued a conversion notice to convert its holding of convertible preference shares and has commenced legal action in order that it may also vote such shares at the special meeting of shareholders. William Hill does not wish to make any further comment on those proceedings at this time, other to confirm that it will continue to act in the best interests of its shareholders.”