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Perelman divesting Scientific Games: FT
Posted on Monday, 14 September 2020 12:43
Caledonia Investments is on the verge of acquiring US gambling products maker Scientific Games from billionaire owner Ron Perelman, according to the Financial Times (FT).
Citing people with knowledge of the situation, the financial daily said the investor, which owns the holding via MacAndrews & Forbes, is to offload the 40.0 per cent stake in a deal which will value the target at around USD 2.00 billion.
The sources added that an announcement could be made later today.
According to the FT, which cited comments he made to Vanity Fair, Perelman hopes to jettison his stake in a bid to streamline his portfolio in the wake of the Covid-19 pandemic, which took a heavy financial toll on many businesses globally.
The report said the enforced closure of gambling venues in Las Vegas, among other locations, were particularly affecting to the firm.
In an email sent to the fashion, popular culture and current affairs magazine, he said he wants his business life to be “less complicated and less leveraged”.
Vanity Fair’s article speculated that financial problems are a factor in Perelman’s decision to exit some businesses., with one source suggesting that he is in the process of going bankrupt.
However, a source with knowledge of his finances denied this last claim.
Scientific Games’ value has declined considerably over the last few years; from a high of USD 60.20 on 25th May 2018, it slipped as low as USD 5.97 on 3rd April.
However, the price has since recovered somewhat and the stock finished the day at USD 18.97 on 11th September.
At this price, the firm can be valued at USD 1.80 billion, compared to USD 5.72 billion on 25th May 2018.
Scientific Games is headquartered in Las Vegas and employs 9,500 people.
The company’s customer base spans six continents and the manufacturing, printing, and commercial industries.
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