SkyBet backs Sci Games’ NYX takeover

SkyBet backs Sci Games’ NYX takeover

UK-based online gambling operator Sky Betting & Gaming (SkyBet) has thrown its support behind Scientific Games Corporation’s impending acquisition of NYX Gaming Group Ltd.

SkyBet backs Sci Games’ NYX takeoverIn a statement, SkyBet said the successful acquisition of NYX by U.S. gaming technology provider Scientific Games Corp. (Sci Games) will deliver great value to the Canadian-listed NYX’s shareholders. SkyBet is a minority investor in NYX, owning close to 1.65 million ordinary shares and 412,000 warrants in the company, as well as 37,400 convertible preference shares in a NYX subsidiary.

“We look forward to continuing to work with a combined Scientific Games and NYX as more jurisdictions around the world look to legalize sports betting and online gaming,” SkyBet CEO Richard Flint said in a statement.

SkyBet’s statement comes on the heels of Sci Games’ announcement that it entered into an independent agreement to support the previously announced acquisition of NYX for CAD2.40 (US$1.87) per ordinary share. For the acquisition to move forward, NYX and Sci Games need to get the approval of their shareholders, who are scheduled to meet on December 20 in Las Vegas.

Aside from SkyBet, proxy advisory firms Institutional Shareholder Services Inc. and Glass Lewis and Co. also recommended that NYX shareholders vote to approve the acquisition.

Sci Games first announced its intention to buy NYX in September as part of its plan to expand its existing digital gaming and online gambling portfolio.

The plan, however, hit a snag after British bookmaker William Hill threatened to block the deal unless it received certain assurances regarding the continuity of its arrangement with sports betting provider OpenBet, which NYX controls. This prompted NYX and Sci Games to lodge twin anti-trust suits against Hills. Last week, Sci Games and Hills settled their differences with a deal “to end all litigation among the parties.”

The parties have also reached a new commercial agreement that apparently satisfies Hills’ previous concerns regarding its relationship with OpenBet.