A new major industry merger in the making
Super Group owns the popular sports betting operator Betway. The group has announced a multi-billion dollar merger with SEAC (Sports Entertainment Acquisition Corporation). Through this merger, Super Group will expand its offerings in the US market.
Super Group’s merger with SEAC is based on a preliminary valuation of $4.75 billion.
After combining with SEAC, Super Group will be able to list shares on the stock exchange as SGHC while maintaining operations under the title of Super Group.
SEAC owns the Spin online casino business which consists of multiple brands. When SEAC and Super Group combine, they will both operate under the name of Super Group. This implies that SEAC’s current multi-brand online casino gaming business, Spin, should also operate under the new name.
Super Group will maintain the majority share of the new company.
The merge will bring roughly $450 million into the new combined brand and Super Group’s current shareholders will keep 88% of shares. The new company should have close to $200 million in cash at closing.
This is assuming there are no objections from SEAC’s current shareholders. Both company’s boards have unanimously approved the merger, but it’s still subject to SEAC shareholder approval.
Super Group shareholders that comprise at least 70% of the company’s equity won’t be allowed to sell their shares. Instead, their position will roll over into the new company.
The merger is forecasted to close in the second half of 2021.