Perelman Nears Scientific Games Stake Sale to Caledonia

Billionaire Ronald Perelman has agreed to sell his stake inScientific Games Corp. to Australian investment firm Caledonia, according to people with knowledge of the matter.

Caledonia is set to pay more than $25 per share for Perelman’s roughly 39% stake in Las Vegas-based Scientific Games, which provides gambling products and services such as slot machines, said the people, who requested anonymity because the transaction isn’t yet public. That’s at least a 32% premium to the company’s closing price Friday of $18.97 apiece and values the stake at more than $920 million.

Caledonia, which also has large stakes in companies such as Grubhub Inc., Warner Music Group Corp. and Zillow Group Inc., will get two board seats as part of the transaction, one of the people said. An announcement could come as soon as Monday, the people said.

A spokesman for Perelman’s firm MacAndrews & Forbes declined to comment. Representatives for Scientific Games and Caledonia didn’t immediately respond to requests for comment.

Perelman disclosed his plans to explore a sale of his holdings in Scientific Games in a Julyfiling. His entities hold about 39% of the company, giving it a market value of $698 million as of Friday’s close, according to data compiled by Bloomberg.

The billionaire, who sold two of his paintings for about $37 million in July, has authorized Sotheby’s to find buyers for hundreds of millions of dollars of additional works from his vast collection, Bloomberg Newsreported last month.

Perelman’s MacAndrews & Forbes currently backs a number of highly levered companies with debt trading at distressed levels, including Revlon Inc. and Vericast Corp. It recently sold its stake in Humvee-maker AM General LLC to private equity firm KPS Capital Partners.

Caledonia owns a 10.4% stake inFlutter Entertainment Plc., the Irish gambling giant whose brands include Paddy Power and Sky Bet, according to its most recent regulatory filings.

Macquarie Group Ltd. advised Scientific Games, Deutsche Bank AG advised MacAndrews & Forbes, while Moelis & Co. advised Scientific Games’s special committee.

Source: Read Full Article