Brookfield pays less than jackpot in lotto deal

Brookfield Business Partners LP

28/10/2021 21:59

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Jonathan Guilford
    NEW YORK, Oct 28 (Reuters Breakingviews) - Scientific Games
is selling its lottery business to the asset manager for $6
billion. The price looks good, even if a bid to list the unit in
Australia may have left some dreaming of more. Yet the $9 bln
parent’s stock tanked 13%. Bullish markets create demanding
shareholders.
    Full view will be published shortly.
    Follow @JMAGuilford https://twitter.com/JMAGuilford on
Twitter
    
    CONTEXT NEWS
    - Scientific Games said on Oct. 27 it agreed to sell its
lottery business to Brookfield Business Partners for $6.1
billion. The deal consists of $5.8 billion in cash and an
earnout of up to $225 million on certain profitability targets
in 2022 and 2023.  
    - The business provides instant and generated lottery games,
sports betting and other retail lottery systems. 
    - Reuters reported on Oct. 21 that Scientific Games'
potential Australian initial public offering of its lottery
business had been cut by two-fifths to about $3 billion,
according to a document and two people familiar with the
matter. 

 (Reporting by Jennifer Saba. Editing by Lauren Silva Laughlin
and Amanda Gomez)
 ((For previous columns by the author, Reuters customers can
click on  GUILFORD/  
SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS https://bit.ly/BVsubscribe
 | Jonathan.Guilford@thomsonreuters.com; Reuters Messaging:
Jonathan.Guilford.thomsonreuters.com@reuters.net))