VGW shareholders have approved a deal for founder Laurence Escalante to acquire full ownership of the sweepstakes casino company.
Escalante was effectively bidding for the remaining 30% share in VGW that he did not own, with the AUD 632 million ($409 million) buyout proposed through his special purpose vehicle, Ocean BidCo Limited.
At $3.32 per share, the offer was said to be “fair and reasonable” by Kroll Australia, which valued VGW at up to $3.70 per share.
Ultimately, the proposal was accepted after 85% of VGW shareholders voted in to approve the minority stake sale.
It represents greater value for shareholders compared to the previous attempt from Ocean BidCo at $2.26 to $2.58 per share, which was declined by the board committee set up to oversee the sale process.
There will be further returns as part of the transaction, as Ocean BidCo will borrow up to $586 million from VGW to fund the transaction for the other 30% of the gambling operator.
Agreement subject to Federal Court approval
VGW Independent Board Committee Chairman Mike Symons said on completion of the vote:
“I would like to thank all of VGW’s shareholders for their participation in the shareholder meetings today and their support of VGW.”
Despite full agreement, the transaction is subject to further approval from the Federal Court of Australia, with a hearing to take place on Tuesday, August 5.
If approved, the rest will become a formality with further legal correspondence to follow.
VGW is said to have recorded $4 billion in revenue for the 12 months up to June 30, 2024, with the results delivering a 27% increase year-on-year.
The company recently confirmed that its Chumba Casino and Luckyland Casino platforms will no longer be available to players in New Jersey, due to the incoming ban on sweepstakes casinos in the state.
Image credit: VGW
