The move comes a week after Scientific Games revealed plans to divest its lottery and sports betting businesses in order to deleverage and provide the resources to further invest in digital. Those plans follow completion of a strategic review by the Board of Directors to determine how the company could best optimize its portfolio.
Scientific Games said at the time it is also considering strategic alternatives for the divestitures for each business, including an IPO, a combination with a special purpose acquisition company (SPAC) or a strategic combination with another business.
Analysts have valued any such ASX listing of Scientific Games’ lotteries arm, which recently reported EBITDA of US$430 million in the past 12 months, at between US$3.44 billion and US$5.16 billion.
The AFR report says it expects Australian bankers to warmly welcome the proposal, which if consummated would see Scientific Games join other ASX-listed gaming firms such as Aristocrat, Tabcorp, Crown Resorts and Star Entertainment Group.
Scientific Games President and CEO Barry Cottle said last week that the decision to divest “reflects key steps to optimize our portfolio and strengthen our balance sheet by significantly de-levering while also targeting investments in our largest growth opportunities. These steps will accelerate our path to become a content-led growth company focused on leading in both land-based and digital markets.”
Source: IAG
