Bragg Gaming Forms Committee to Explore Possible Sale
Bragg Gaming (NASDAQ: BRAG) announced on Tues the shaping of a special citizens committee to explore strategical alternatives, including a possible sale.
Comprised of get on members, the citizens committee testament be led past Director Don River Robertson. It arrives with the small-cap gaming carry upward 44.5% over the yesteryear 12 months. Canada-based Bragg antecedently announced a strategic review inward 2021, but that architectural plan didn’t honorable mention a sales agreement and didn’t bring forth practically inwards the path of notable headlines.
The special committee has been decreed to count and explore strategical alternatives, which may include the sales agreement of the Company or of its assets, a merger, financing, further acquisitions, or other strategical alternatives,” according to a financial statement issued by Bragg.
The gaming keep company added that in that respect is no more specific timeline for the strategical look back to follow completed, and that it’s possible no dealing will materialize.
Investor Previously Pushed for Sale
News of Braxton Bragg forming the special citizens committee to evaluate a potential sale arrived near 5 months after Raper Washington father Jeremy Raper — who oversees entities managing 375K shares of the gaming company — penned a letter of the alphabet to Bragg CEO and Chairman Matevz Mazij, excoriating the companion for relax percentage performance.
At that time, Raper noted a sales agreement by Bragg could bring “certainty of value” for investors, in particular because the carry traded at depressed multiples relation to rivals. In a brand on ex (formerly Twitter) on Tuesday, Raper applauded Bragg’s warm fourth-quarter and 2023 results, though he has in time to notice on the shaping of the advertising hoc committee.
The announcement by Braxton Bragg could be well-timed, because analysts widely trust iGaming and sports betting consolidation will increase, with specific accent on technology. That could connote a change of suitors could live interested in Bragg.
Bragg “will not follow providing further comment on the position of the strategical limited review physical process at this time, and intends to provide farther updates as circumstances stock-purchase warrant and in accordance with applicable securities laws. While the strategic retrospect operation is ongoing, the Company’s management remains committed to executing the Company’s strategy and business sector be after with the full backing of the Board,” the stiff added inward the public press release.
Precedent for Bragg Sale
Over the yesteryear 20 months, thither get been to a greater extent than half a dozen acquisitions of business-to-business (B2B) or business-to-consumer (B2C) iGaming companies, of which Braxton Bragg is one.
Bragg could unlock significant economic value for investors inwards a sale, assuming a generous premium is offered. That’s because those transactions took position at an average endeavor note value to earnings before interest, taxes, depreciation, and amortisation (EV/EBITDA) ratio of 15x. That’s more than twofold where Braxton Bragg trades today.
Last year, Raper noted that if Braxton Bragg traded at 12x EV/EBITDA, the shares would live worth $13.50. The gillyflower resided at $5.30 at this writing.
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