According to reports, the American land-based and online gaming giant Scientific Games Corporation has begun talking about the benefits of listing its global lottery operation on the Australian Securities Exchange.
The Australian Financial Review newspaper reported on Wednesday that the negotiations had just begun, a week after the Las Vegas-based company revealed that it will be looking into a number of possibilities for a potential sale of its lottery and sports betting holdings. According to the source, this conversation is still reportedly in the pitching phase but might eventually result in the launch of an IPO, which would potentially net Scientific Games Corporation at least $3.7 billion.
Significant commitment:
According to the newspaper, Scientific Games Corporation's action would rank among the largest non-privatization initial public offerings in the history of the Sydney stock exchange and put the project on par with the nearly $4.3 billion venture finished by the government-backed Medibank Private Limited in 2014. The largest such action for the Australian Securities Exchange is reportedly the approximately $7.4 billion float from telecommunications giant Telstra Corporation Limited in 1997, while Latitude Financial Services currently holds the top spot with an approximately $1.9 billion valuation thanks to its late-April listing.
a thorough evaluation
According to The Australian Financial Review, Scientific Games Corporation's lottery division generated earnings before interest, tax, depreciation, and amortisation of about $570 million in the previous fiscal year. Numerous market analysts predict that the division's actual market value could be up to ten times this amount. According to reports, financial services company Jefferies forecasted a more cautious valuation of between $3.4 billion and $5.1 billion with a mid-point figure slightly north of $4.3 billion last week using an official letter.
developing familiarity
According to the newspaper, Australian bankers will probably try to convince Scientific Games Corporation that their market is the best place for the company's lottery operations because it has previously welcomed casino operators like Crown Resorts Limited, The Star Entertainment Group Limited, and SkyCity Entertainment Group Limited. Tabcorp Holdings Limited, a giant in local sportsbetting that is additionally listed on the Australian Securities Exchange, may decide to locate its soon-to-be-divestmented lottery and keno division there as well.
regional linkages
After conducting a strategic review of its operations under the direction of Australian-born Toni Korsanos and Jamie Odell, who were formerly senior executives at New South Wales gaming machine giant Aristocrat Leisure Limited, Scientific Games Corporation reportedly decided to potentially spin off its lottery operation. The firm is also allegedly supported by Caledonia Investments, which has its headquarters in Sydney. The company would certainly be warmly welcomed by the bourse's sizable institutional investor community.
