Bally’s and Gamesys target Q4 merger completion

Bally’s £2bn acquisition of Gamesys Group could be wrapped up by the end of 2021, according to the latest regulatory filings. The US casino operator launched a £2bn offer for Gamesys in March as part of an ambitious M&A drive to realise its US-focused B2C and B2B ambitions. It is understood a scheme takeover document, which is a mandatory requirement for any M&A proceedings involving a UK operator, will be published on 28 May. A scheme court hearing will then be scheduled for a later date in 2021. Caesars Entertainment’s £2.9bn takeover of William Hill was eventually sealed following a protracted scheme court hearing in April. “Subject to the approval of the Financial Conduct Authority, it is expected that Bally’s will publish the UK prospectus required in respect of the issuance of new Bally’s shares relating to the Share Alternative being made available to eligible Gamesys shareholders on the same date,” Gamesys said. If the merger is approved by shareholders and the court, the combined group would be headquartered in Rhode Island and would retain its listing on the New York Stock Exchange, with a renewed focus on the high-growth US igaming and betting market. Upon completion, Gamesys CEO Lee Fenton will become CEO of the combined group, while Bally’s CEO George Papanier would stay on as a member of the new board and would continue to manage the group’s retail casino business. In April, Bally’s completed a share rights offering worth $671.4m in proceeds from a combination of retail and institutional investors to provide funding for the deal. Under the terms of the agreement, Gamesys shareholders are eligible to receive either 1,850p in cash for each Gamesys share or 0.343 in new Bally’s shares. Gamesys directors and shareholders accounting for 33.3% of the firm’s issued share capital have irrevocably undertaken to vote in favour of the combination at a forthcoming shareholder vote. A positive vote of 75% is required to push the deal over the line.