Emmett Investment Management, a significant shareholder owning about 1.5% of PlayAGS's outstanding shares, has declared its opposition to the proposed takeover of the company by Brightstar Capital. Last week, PlayAGS revealed plans to sell itself to the private equity firm Brightstar in a deal valued at $1.1 billion.
Under the terms of the agreement, PlayAGS shareholders stand to receive $12.50 per share in cash, representing a substantial 40% premium over the closing price on May 8. If the deal receives approval from regulatory bodies and shareholders, PlayAGS will transition into a private entity, delisting its shares from public exchanges. The anticipated timeline for the completion of the acquisition is set for the latter half of 2025.
Despite the proposed premium, Emmett Investment has voiced its dissent, labeling the deal as "inadequate." Alexander Rohr, Founder and CEO of Emmett Investment, expressed the firm's stance, stating, "We are not opposed to the privatization proposal per se, but Brightstar's proposal does not reward shareholders for the strong performance that AGS has already demonstrated and does not recognize the company's significant potential."
As the acquisition heads towards a shareholder vote, the opposition from Emmett Investment underscores the complexities and considerations involved in securing approval for the takeover bid.
