VGW founder Laurence Escalante seeks $1b buyout of other shareholders
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The news: Virtual Gaming Worlds’ founder and CEO Laurence Escalante is seeking to buyout the other shareholders of the online gambling company for around $1 billion
The numbers: Escalante and his entities already own about 70% of the company. He wants to buy all other shares at $5.05 each which would value the company at $3.2 billion.
This is a 106% premium on the last traded price of VGW shares on the pre-IPO marketplace PrimaryMarkets. It also represents an acquisition multiple three times VGW’s EBITDA for calendar year 2024 plus net cash at 31 December.
VGW currently expects second half earnings for financial year 2025 to be between 10% to 15% lower than in the first half.
The context: Shareholders have the option of receiving cash or scrip consideration to own shares in Ocean BidCo, the unlisted special purpose company established by Escalante’s family office Lance East Office.
VGW directors already back the scheme although shareholders will still need to vote on it. Pending satisfaction of the scheme implementation deed conditions, the acquisition is proposed to take place in August 2025.
In January 2025, Escalante’s family office tried to buy out minority shareholders for a cash consideration between $3.50 and $4.00 per share. This bid was rejected by the VGW independent board committee for several reasons, including the belief that the offer undervalued the company.
The source: VGW media release
