The fight for NYX ramps up

News on 23 Nov 2017

The proposed Cdn$775 million acquisition of NYX Gaming by Scientific Games (see previous  reports) is becoming increasingly combative as William Hill seeks to interfere in order to protect its shareholders’ interests.

With litigation now filed by all three companies aggravating the issue, Scientific Games added fuel to the flames this week by announcing that it has acquired 10.7 percent of NYX Gaming’s outstanding ordinary shares for around Cdn$ 27 million, having previously had no holding at all.

Our readers will recall that two months ago SG announced agreement to buy NYX in a strategic move that could prove very profitable if sports betting is more widely legalised in the United States following a favourable decision from the US Supreme Court appeal by the state of New Jersey.

William Hill, which has an interest in the matter through its prior Openbet agreements with NYX, has tried to impose conditions on the sale and threatened to wield its 32 percent NYX shareholding to back up its demand.

That triggered a series of accusations and counter accusations, followed by law suits.

Scientific Games’ latest move of buying up NYX shares is being seen as an attempt to counter William Hill’s equity influence ahead of a scheduled December 20 NYX shareholder’s vote on the proposed deal.

In any case Scientific Games has said that if it is not successful in gaining shareholder approval on that date it has an alternative plan.  This will be to engineer a “contractual takeover” campaign direct to other NYX shareholders, offering an attractive incentive to sell their shares.

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