On 28th November, Canadian gambling investment company Pollard Equities announced that it has purchased 4 million warrants at a price of C$0.03 per warrant. This entitled the company to acquire additional shares in Canada-listed gaming and sports betting content supplier NYX Gaming Group and enter an agreement pursuant to the “Early Warning Requirements“. Under the recently-penned agreement, Pollard Equities is to acquire ownership of outstanding ordinary shares in NYX for an aggregate purchase price of C$120,000. Pollard Equities’ latest shopping spree increased its stake in the outstanding ordinary shares of NYX by 3.2%.
A wave of consolidation activity in the gambling industry has affected a number of industry-involved companies. The main reason behind the mergers and acquisitions trend is that the big companies are getting more effective and profitable. The leading global companies focused on acquisitions as a way to quickly achieve a greater breadth and expand their presence on the market. NYX seems to adapt to the consolidation trend pretty fast.
According to the latest news, NYX signed an acquisition agreement with Pollard Equities. The fresh deal is to see Pollard Equities increasing its interest in the outstanding ordinary shares of NYX up to 11.2%. Here, it is important to explain that prior to the deal, the Pollard Equities already owned 8,621,300 ordinary shares, or around 8%.
Scientific Games Corporation Expresses Interest in Acquiring NYX
Not long ago, NYX revealed that the company has agreed to an Arrangement Agreement with the Nasdaq-listed company Scientific Games Corporation, an internationally recognized provider of products and services for the gambling industry. Under the terms of the deal, Scientific Games is to acquire NYX for a price of C$775 million. This means that the company is to acquire ownership of NYX’s outstanding ordinary shares at C$2.40 per share. The agreement is currently pending the approval of NYX’s shareholders.
Pollard Equities is known to also owns more than 70% interest in Pollard Banknote Limited, a well-established company known to partner with more than 60 lotteries around the world. The two companies signed a separate agreement, under which Pollard Banknote is allowed to purchase the ordinary shares and warrants that are owned by its patron. The two companies, on the other hand, have no other side agreements with NYX, gambling operator William Hill or Scientific Games in relation to its ordinary shares and warrants it owns.
Pollard Equities announced that it is to closely observe the proposed Arrangement Agreement and consider its investment in NYX if needed. In fact, the company has a limited number of options, including further expanding its stake in NYX or selling its shares in the company.