Founder of VGW aims to assert complete ownership over the entire corporation.
Laurence Escalante, the visionary founder and CEO of Virtual Gaming Worlds (VGW), is on a mission to gain full control of the company. To achieve this, he's inviting shareholders to partake in an enticing offer worth AU$5.05 (approximately US$3.28) per share. This massive buyout values the company at a staggering AU$3.3 billion (US$2.14 billion).
VGW, renowned for its popular sweepstakes platforms Chumba Casino, Luckyland Slots, and Global Poker, is facing the heat as the legality of these platforms is questioned in multiple states. For instance, Louisiana is poised to ban these platforms, joining Montana and Nevada, while Connecticut and others seem ready to follow suit. In response, VGW seeks to shore up its position by offering shareholders an opportunity they can't ignore.
The buyout process is being governed by an Independent Board Committee (IBC), chaired by Mike Symons, to ensure fairness to shareholders. Initiated by Lance East Office (LEO), Escalante's family office, the IBC has been working diligently to safeguard all parties involved.
Initially, LEO proposed a non-binding offer between AU$3.50 and AU$4 per share. However, the IBC deemed this valuation to be too low. After further negotiations, LEO has sweetened the deal by increasing its offer and providing shareholders an option to roll their shares into a specially created bid vehicle.
It seems that shareholders are warming up to the deal. The IBC views the offer price as a fair reflection of the company's worth, taking into account both its potential and ongoing regulatory risks. The strategic move offers shareholders the flexibility to either cash out or maintain their stakes, which could lead to potential capital gains tax rollover relief for minority shareholders.
However, some minor frictions and transparency issues have arisen amidst this high-stakes strategic maneuver. These tensions are likely fueled by the complex regulatory environment VGW operates in. Nevertheless, given Escalante's substantial stake in the company, it's unlikely that a superior alternative proposal will surface.
All in all, the offer appears to be well-received by key stakeholders as a strategic move to navigate current market conditions and regulatory challenges. So, are you ready to roll the dice and join Escalante in this game-changing move?
The buyout offer by Lance East Office (LEO) for Virtual Gaming Worlds (VGW) provides shareholders with an attractive investment opportunity in the finance sector, with each share valued at AU$5.05. As the company navigates through regulatory challenges in various states, this deal offers shareholders the flexibility to cash out or maintain their stakes, potentially benefiting from capital gains tax rollover relief.
