U.S. investor Ronald Perelman is expected to sell his near 40% stake in gambling products company Scientific Games Corp to Australia’s Caledonia Investments, the Financial Times reported on Sunday, citing people familiar with the matter.
Scientific Games, which had a market capitalization of about $1.8 billion as of Friday close, will be valued at about $2 billion post the deal, according to the report.
Perelman’s investment firm, MacAndrews & Forbes, could announce a deal with Caledonia, which invests mostly in gambling-related assets, as early as Monday, the FT reported.
The investment firm said in July that it was interested in selling its stake in Scientific Games, according to a filing with the U.S. Securities and Exchange Commission.
With several of his companies affected by the coronavirus pandemic, Perelman has been looking for ways to downsize his portfolio, the FT reported.
In July, MacAndrews & Forbes sold its majority stake in AM General – the Humvee maker – to KPS Capital partners for an undisclosed amount.
MacAndrews & Forbes, Scientific Games and Caledonia did not immediately respond to Reuters’ requests for comment.
Source: Reuters.com