Yesterday, Canada’s supplier of omni-channel betting content NYX Gaming Group held its shareholder meeting, which was set to kick off on 20th December in Las Vegas. All shareholders were allowed to vote for or against Sci Games’ proposal to take over NYX. Today, NYX made once again the headlines after announcing that the majority of the shareholders throw their support behind the $631 million acquisition of the company.
Toronto TSX-listed NYX finally received the needed support from its shareholders to move forward Scientific Games’ proposal to assume control over NYX. NYX’s shareholders almost unanimously supported the acquisition deal. In two separate votes on a “scheme of arrangement” filed with a Guernsey court, 99.6% of the shareholders voted in favor of the proposal. Following the first voting session, 99.8% of shareholders approved a special resolution that is to allow the heads of the company to undertake actions with a view to the finalization of the deal. Here it is important to note that in the eyes of Guernsey law, an acquisition should be supported by at least 75% of the shareholders in order to receive a go-ahead.
To make the deal officially valid, the court is set to hold a final hearing on 5th January, in which a judge is to put a stamp “approved” on the vote and ratify the deal. Earlier this year, Sci Game announced interest in expanding its portfolio by acquiring NYX. The company started to take steps towards the potential acquisition of NYX by purchasing shares and warrants of NYX stock in an attempt to bolster its presence in the company. Supposing that the deal receives all the needed approvals, Scientific Games will acquire all of the outstanding ordinary shares of NYX Gaming for C$2.40 per share.
Key Approvals by Key Shareholders
In a Sunday press release, NYX announced that Pollard Equities Ltd, a minority shareholder company in NYX, also approved NYX’s acquisition by the gaming conglomerate Sci Games. A few days ago Casino Reports unveiled that Pollard owns 8,621,300 ordinary shares of NYX and 4,000,000 warrants. Prior to Pollard’s approval, UK bookmaker Sky Betting & Gaming decided to thumb up the acquisition project. At that moment, the betting operator reportedly had 648,000 ordinary shares of NYX, combined with 412,000 warrants, and 37,400 convertible options.
The main hurdle for the two companies to seal the acquisition deal appeared to be the key shareholder and a leading British gambling operator William Hill, which holds 32% of NYX’s ordinary shares. The gambling operator even filed a legal complaint aiming at scuttling the acquisition deal. At this moment, the legal battle seems to be over and the two companies can take further action in the direction of NYX’s acquisition by Sci Games.