Australia’s Federal Court has approved the convening of a Scheme Meeting for 1 August to approve the purchase by BidCo, an unlisted special purpose company established by Escalante’s Lance East Office (LEO).
The A$5.05 per share offer was highlighted as the sweepstake casino giant’s “best and final” offer, with it stating that it will not be increased.
An independent expert involved in evaluating the proposed deal has concluded it is fair and reasonable, as well as in the best interests of VGW shareholders in the absence of a superior offer.
It follows reports of the intended deal which emerged at the beginning of this month, which would see the number one US sweepstake casino operator become solely owned by Escalante.
VGW: We face a tricky regulatory environment
Mike Symons, VGW independent non-executive director and chairman of its independent board committee, argued the deal provides VGW shareholders with the chance to realise cash value in the short-term.
This, he argued, comes as the business faces an environment characterised by rapidly evolving US regulatory developments and increasing competition.
Sweepstakes casinos have faced pushback across the US in recent months, including from state gaming regulators, attorney generals and legislators.
He said: “Today is an important milestone in this proposed transaction, and the independent directors strongly encourage all shareholders to carefully consider the scheme booklet and the Independent Expert’s conclusion that the Scheme cash consideration is fair and reasonable.”
“We believe the scheme represents an attractive outcome for shareholders, noting this is the best and final offer from LEO and that an alternative superior takeover proposal from another person is unlikely to emerge.
“As noted in the announcement on 2 June 2025, the IBC and its advisors negotiated several improved offers from LEO prior to announcement of the transaction, and LEO’s best and final statement confirms that the Scheme consideration will not be increased.”
The news follows previous reports Escalante had told minority investors to “shut the f*** up” on a Telegram chat when questioned about the company’s financial disclosures.
Dingnews.com 01/07/2025