Malta’s online bookmaker Betway parent nears $5.1bn SPAC merger to go public

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Malta’s online bookmaker Betway parent nears $5.1bn SPAC merger to go public

Super Group, the parent company of Malta-based online bookmaker Betway, had been brewing off an option to go public via an SPAC (Special Purpose Acquisition Company) merger with a blank-check firm Sports Entertainment Acquistion Corp., which in effect could value the merged entity at an approximated $5.1 billion, becoming the latest to go public through an SPAC route amid a high-flying US equity market, people familiar with the subject-matter had unveiled on Saturday on condition of anonymity given the scale of sensitivity of the issue.

On top of that, the move from Betway parent to go public through a merger with a blank-check company, Sports Entertainment, came against the backdrop of its planned acquisition of Digital Gaming Corp., while a successful takeover of Digital Gaming would help Betway parent tap online betting markets on at least 10 US states, added the sources.

SPACs or blank-check firms are shell entities that could be capitalized on to taking a company public following a merger or acquisition, while SPACs are allowed to raise funds from shareholders or initial offerings to finance their mergers or acquisition deals without telling their investors about the company which they have been pursuing.

Betway parent in talks to go public via $5.1 billion SPAC merger

Aside from that, a press agency report published late on Saturday had quoted sources familiar with the negotiation as saying that more than a two-third of Super Group’s stake would not be floated under the terms of the deal, while Sports Entertainment executive Chair, Eric Grubman, a former NFL executive, would become the Chairman of merged entity, while Sports Entertainment Chief Executive, John Collins, a former National Hockey League COO (Chief Operating Officer), would join Betway parent Super Group’s management board according to the terms of the deal.

Nevertheless, taking an SPAC route to get listed in US money market had been tapered off substantially over recent weeks following a boom on first quarter of 2021 after US regulators had altered the accounting requirement for an SPAC merger to go public.

Founded back in the 2006s, Malta-based online gambling platform, Betway, had stretched its roots across all over the world ranging from the UK’s EPL (English Premier League) to India’s IPL (Indian Premier League).