GTECH board calls shareholder meeting for IGT acquisition

GTECHIGT

The Governance Board of GTECH SpA has announced a planned extraordinary shareholders’ meeting on 4 November to outline the steps needed by the technology and lottery provider to finalise its acquisition of International Game Technology (IGT).

The GTECH SpA board intends to seek approval to seal its cross-border merger of GTECH and Georgia Worldwide Plc. Georgia Worldwide will look to become the holding company for GTECH and IGT operations, if the acquisition is completed.

September saw GTECH CEO Marco Sala  issue a statement that it had formed a senior management steering committee in order to aid its planned $6.4 billion (£3.95 billion) acquisition of IGT.

Last week saw the announcement that the Board had greenlighted plans for a share repurchasing scheme, which would enable the company to raise 9.5% of its corporate value.

The acquisition will see GTECH acquire the IGT through a combined sum of $4.7 billion in cash and $1.7 billion in net debt. GTECH announced that it would pay a repurchase share price of €18.40.

Sector analysts commented that the purchase of IGT would see GTECH SpA derive more than $4 billion revenues from foreign operations. The technology developer currently makes 60% of revenues in the Italian gambling/lottery market, which has witnessed a continual decline.

GTECH have been advised on the acquisition of IGT by Morgan Stanley’s corporate mergers and financing division. The company has received binding loan commitments from Credit Suisse, Barclays and Citigroup.

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