Bally’s shareholders to vote on Gamesys merger this month
The proposed merger between Bally’s and Gamesys has to be approved by the shareholders at a special meeting set to take place in late June.
US.- Bally’s Corporation‘s $2.7bn acquisition of the online software development and gaming business Gamesys Group will face shareholders’ vote later this month.
The deal will see Bally’s pay $2.74bn in cash, or $18.50 per Gamesys share. Shareholders can exchange their holding for 0.343 newly issued Bally’s shares per Gamesys share.
A special meeting is scheduled for June 30 for shareholders to vote on a deal that will see a transformation of Bally’s board. Lee Fenton, currently chief executive of Gamesys, would become chief executive of the combined group.
Meanwhile, Bally’s chief executive George Papanier, would remain in charge of the land-based business.
There are currently 42,452,582 shares of Bally’s common stock outstanding and entitled to vote.
Bally’s board stated: “Bally’s believes that the online gambling and sports betting sector in the US continues to exhibit many characteristics that are structurally attractive with a steep anticipated growth trajectory as favorable regulatory progress throughout the US leads to the opening of new sports betting and igaming markets.
“Bally’s believes that having a combination of both proven, developed technology and land-based platforms across key U.S. states, with global brands, existing customer bases and complementary product offerings will be key to taking advantage of these growth opportunities.”
The merger is set to close in Q4 of this year, subject to regulatory approval.
Bally’s-Gamesys merger: how it will be financed
According to the documents distributed to Bally’s shareholders ahead of the deal, real estate investment trust Gaming and Leisure Properties (GLPI) will purchase shares or warrants in Bally’s stock of up to $500m, at a price that is yet to be determined.
In addition, a series of banks including Deutsche Bank and Goldman Sachs have agreed to provide bridge term loan facilities up to £1.44bn, plus an additional €336m.
As part of the deal, a new Bally’s subsidiary named Bidco will be created, which will acquire Gamesys.
