Scientific Games’ global lottery business is attracting the attention of potential buyers in the shape of Brookfield Asset Management Inc.’s private equity arm and Apollo Global Management Inc.
According to reports by Bloomberg, SG has been in talks with several interested parties over the potential sale of its lottery division for several weeks. Sources have indicated that any final decision on a sale hasn’t been made and Scientific Games could still decide to keep the unit.
Bloomberg cited a $7.5bn valuation placed on the division, which is inclusive of debt, in an initial public offering. Despite this, it is unknown how much private equity firms are willing to pay for the division.
It comes at the same time as reports suggest the Las Vegas-based company is also considering a stock listing in Australia.
The Australian Financial Review has reported that SG leadership has indicated it has received offers of $3bn for its IPO and ASX listing.
Furthermore, back in June, SG indicated that it was seeking to divest its lotteries and sports-betting units through three potential avenues: a merger with a special purpose acquisition company; a sale; or a strategic combination with another company.
Scientific Games nor Brookfield and Apollo have made any official comment relating to any potential takeover or sale.