Scientific Games News: Why SGMS Stock Is Soaring 37% Today

Scientific Games (NASDAQ:SGMS) is in the news Monday as a change to its investors and Board boosts SGMS stock up.

Casino with games to play

Source: Ioana Catalina E /

A Scientific Games news release reveals that Caledonia and other institutional investors are acquiring a 34.9% stake in the company. That stake is being bought from MacAndrews & Forbes at a price of $28 per share.

With the new group of investors, Scientific Games notes that it’s also making major changes to its Board of Directors. Starting off, the company points all that all current Board members from MacAndrews & Forbes are resigning.

With that change, the company says it is reforming its Board to includes all of the remaining members, plus three new ones. The first of these new members is former Aristocrat CEO Jamie Odell. He’s joining the Board as its executive chairman.

Next up is former Aristocrat CFO Toni Korsanos. He is joining the Scientific Games Board as its executive vice chairman. The final new member to join the Board has yet to be chosen but will be an independent non-executive director.

Barry Cottle, president and CEO of Scientific Games, said this about the news.

“As gaming industry revenues continue to recover, we believe Scientic Games is poised to benet from a renewed wave of growth given our position at the forefront of the rapidly expanding digital gaming and sports betting ecosystem and our vast portfolio of original content and licensed brands.”

SGMS stock was up 37.3% as of Monday afternoon.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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