Scientific Games Corp said on Monday that a group of investors including Caledonia Investments would take a 34.9% stake in the company in a deal that would shake up the board of the gambling products firm.
Shares of the company, which makes electronic gaming machines and server-based lottery and gaming systems, rose nearly 16% in premarket trading.
The Australian investment firm and other investors will acquire the stake from billionaire Ronald Perelman’s firm MacAndrews & Forbes Inc at $28 per share, which implies a premium of 47.6% to stock’s last close on Friday.
The company said the reconstituted board will mainly comprise of independent directors and also include three new directors.
Scientific Games said Jamie Odel, the former chief executive of Australian gambling company Aristocrat Leisure, will replace Perelman as executive chairman and two other MacAndrews & Forbes representatives will also resign from the board.
The Financial Times reported on Sunday that Perelman is expected to sell his near 40% stake in the company, citing people familiar with the matter.