Scientific Games has withdrawn its July 15 all-stock offer to acquire the remaining 19 percent equity interest in that it does not already own of its social gaming business, SciPlay Corp.
Scientific Games will retain an 81 percent economic interest and 98 percent voting interest in SciPlay, the company said in a statement last week.
SciPlay said in its statement a special committee of independent directors it had formed to evaluate the bid “rejected Scientific Games’ initial proposal,” which was a quarter share of Scientific Games stock for each share of SciPlay.
The panel then negotiated with Scientific Games for better terms, but the committee and Scientific Games were “unable to reach an agreement,” according to the statement.
Scientific Games will “evaluate additional opportunities to allocate capital to best create shareholder value, including capital returns to shareholders, and will continue to be very disciplined with regards to M&A (mergers and acquisitions) with a clear focus on optimizing returns for shareholders,” the statement said.
SciPlay shares dropped 20 percent after the news.
