Reuters states that Scientific Games is attracting attention from prospective purchasers for its worldwide lottery division, including investment groups Brookfield Asset Management and Apollo Global Management.
Although no involved parties have issued formal statements, sources informed Reuters that the interest is genuine. It seems Scientific Games has been engaged in discussions with investment firms regarding a possible sale for some time. This development follows an announcement earlier this week that Scientific Games was contemplating an initial public offering (IPO) on the Australian stock exchange for its lottery business, potentially generating approximately $3 billion. The IPO process could commence as soon as this week.
Nevertheless, Reuters also noted that a definitive decision has not been reached, and Scientific Games might opt to retain the lottery segment.
Previously this year, Scientific Games had indicated it was exploring options to decrease its debt load, potentially including divesting its lottery and sports wagering units, either through a merger with a special purpose acquisition company or a strategic partnership with another entity.
Just in the past month, the conglomerate concluded an agreement to sell its sports betting operation, OpenBet, to Endeavor Group Holdings in a cash and equity transaction appraised at $1.2 billion.
