VGW shareholders approve founder Laurence Escalante’s $1b buyout
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The news: The shareholders of online gambling company Virtual Gaming Worlds voted overwhelmingly in favour of a $1 billion proposal from founder, executive chair and CEO Laurence Escalante to buy the remaining shares he did not already own.
The numbers: Escalante offered to buy the remaining 29.6% interest in the company that he did not already own for $5.05 each.
Some of the scheme consideration was paid out in interim and special dividends totalling $0.45 prior to the shareholder vote.
Scheme resolution was voted in favour by 85.04% of VGW shareholders present and voting, with 91.31% of the total number of votes cast in favour.
The context: Once the scheme becomes effective, shareholders are entitled to receive, per VGW share they own, $4.60 in cash or one share in Ocean BidCo, an unlisted special purpose company established by Escalante’s family office Lance East Office.
If the scheme is approved by the Federal Court on 5 August it will be lodged with financial regulator ASIC on 6 August, at which point it will take legal effect. The scheme is expected to be implemented on 20 August.
The source: Virtual Gaming Worlds media release
