Benzinga | Jul 15, 2021 07:37AM EDT

Scientific Games Proposes to Acquire Remaining Interest In SciPlay At 11% Premium

* Scientific Games Corp (NASDAQ:SGMS) submitted a proposal to its board to acquire the remaining 19% equity interest in SciPlay Corp (NASDAQ:SCPL) in an all-stock transaction.

* Currently, Scientific Games owns 81% of the economic interest and 98% of the voting interest in SciPlay.

* SciPlay shareholders would receive 0.250 shares of SGMS for each share of SciPlay, implying an enterprise value of $1.9 billion.

* The transaction implies a premium of 11% based on the SGMS and SciPlay respective closing stock prices on July 14.

* Scientific Games expects the transaction to be immediately accretive to the shares.

* Scientific Games held $1.1 billion in cash and equivalents as of Mar. 31, 2021.

* Price action: SCPL shares traded higher by 7.23% at $16.47 in the premarket session on the last check Thursday.