Scientific Games Corp, has invested an extra £16.44m in shares into the NYX Gaming Group. The reason for this move is so that they can strengthen themselves as important shareholders. This should give them more power when it comes to next month’s vote on Scientific Games purchase of NYX. As such, they have just bought 11.6 Million worth of NYX share stock, with values varying between 2.22 and 2.35 CAD. In total, this would give them 10.7% ownership of the company.
In essence, this is very important if they want to go ahead and purchase the company for £487.
However, William Hill is fighting this. They are ready to put a spanner in the works. You know, William Hill is a leading sportsbook that has already invested in NYX. Obviously, this is not ideal for Scientific Games, who is claiming that William Hill is blocking the deal in order to stop competition.
Naturally, William Hill denies this and stated in an email that it is merely trying to protect its own interests. Last Year William Hill invested in the company to support its purchase of OpenBet. OpenBet is the name of the NYX software package that provides the William Hill platform and tech partner.
To sum up, William Hill does underline that they are still open to discussing the Scientific Gaming Acquisition. However, in their email, they state that they haven’t yet “received appropriate assurances” about the joint projects currently underway. So, it appears that until they do, they’ll keep holding out. They have rights as shareholders. Currently, William Hill holds 6.8 Million share units, which gives it 6.28%. However, in April, they got 49,600 preferred shares. This could give them a 31.9% ownership of converted. Under Guernsey Corporate Law, this is enough to block the deal.
Clearly, this is a big deal for both companies who both understand the importance of NYX in an ever-evolving industry.