Australian billionaire Laurence Escalante has taken a bold step to gain full ownership of Virtual Gaming Worlds (VGW), stating that his $3.2 billion offer is his ultimate and best proposal. Through his private investment company Lance East Office, he aims to buy the remaining 30% stake from minority shareholders at $5.05 per share.
Federal Court Clears Path for VGW Buyout Vote
This last offer comes after earlier bids of $3.50 and $4.00 did not catch on. Kroll, an independent expert, backed the newest bid, calling it fair and reasonable. It falls within VGW’s estimated value range of $4.53 to $5.63 per share. The Federal Court has given its okay, and now shareholders will vote on the plan on August 1. The buyout needs a 75% majority to go ahead, reported The Australian Financial Review.
VGW runs Chumba Casino, Global Poker, and Luckyland Slots, well-known online gambling sites that use a sweepstakes model. While the company is headquartered in Australia, it gets almost all its money from the US. In this market, legal questions about sweepstakes gaming keep increasing. Right now, VGW has to defend itself against several legal claims in states like California, Mississippi, and Ohio. On top of that, the company faces a trademark lawsuit in Delaware.
Despite these hurdles, VGW is heading for a record-breaking financial year. In the six months ending December 2024, the company posted $3.51 billion in revenue and $301 million in profit. It predicts a softer second half, forecasting total annual profit between $555 million and $570 million, up from $496 million the year before.
Founder Pushes Buyout to Navigate Legal Risks and Competition
Escalante has emphasized that regulatory uncertainty and growing competition are key factors behind the buyout. In his message to shareholders, he pointed out that the legal environment has grown more complex, making a public listing less feasible. This situation, he claims, justifies his move to consolidate control and reposition the business.
Ocean Bidco Limited, a Guernsey-registered company set up by Lance East, will handle the purchase. If it goes through, VGW will become an owned part of this offshore entity, which might lower its responsibilities to Australian corporate regulators.
In the past, shareholders and the company had some disagreements, including reports of heated talks in private chats. Now, Escalante seems to focus on finalizing the deal through official means. Mike Symons, an independent director chosen to oversee the process, confirmed the deal’s legitimacy and repeated that no better offers have come up.VGW shareholders will decide in August whether to sell their shares at a higher price or remain as the company goes through a big change under its founder’s full control.