SciPlay stock jumps after investor pushes for merger/sale

SciPlay stock rose more than 5 percent in after hours trading in the U.S. on Monday after an activist investor pushed for a merger with parent Light & Wonder, or a sale.

Engine Capital, which owns 5.7 percent of SciPlay, wrote a letter to the boards of both companies setting out its position. 

Engine argues that the current structure is inefficient and creates an overhang on the valuation of both companies. The investor suggested a sale to the parent company at a  price of about $15-$16 a share. 

“That said, if a deal can’t be reached between both Companies or if Light & Wonder is no longer interested to acquire SciPlay, we don’t believe the status quo is desirable and we would then encourage SciPlay to start a review of its strategic alternatives and look for a buyer with the blessing of Light & Wonder,” Engine Capital Managing Partner Arnaud Ajdler and Partner Brad Favreau wrote in the letter, as cited by media reports.

Light & Wonder, formerly Scientific Games, already owns 81 percent of SciPlay, which makes mobile games. 

The two had been in discussions late last year over a buyout of the minority stake, but the talks fell through. 

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