Following the news that ex-Sportnco shareholders have formed a concerted action that now represents 8.2% of the Gaming Innovation Group (GiG) shareholding, SBC News spoke with its representative Hervé Schlosser to find out more about how the investment fits into the group’s plans.
The action means that around 70 former Sportnco shareholders now represent the third largest shareholder in GiG behind New Zealand group Sky City, which hold close to 11% of the group’s shares and Poland investor MJ Investments.
GiG finalised the acquisition of Sporntco in April last year and with close to 50% of the €51m total paid in GiG shares, Schlosser said the ex-Sportnco shareholders “have kept almost all of our GIG shares because we strongly believe in the potential of the company combining Sportnco and GiG assets”.
Schlosser, one of the founders of Sportnco, added that it was “a positive move to continue to support GiG and was announced to GiG Chairman Petter Nylander and CEO Richard Brown a few months ago and they reacted very positively”.
In practical terms, it means the shareholders are committed to casting a single vote at future GIG shareholder meetings. They will also seek at least one seat on the board of directors and could see one of them seek to become a director of GIG.
“It is an option,” said Schlosser when asked if that could be him, “but not the only one, and with GiG recently announcing that its nominations committee will consist of no less than three and not more than four members to represent all shareholders and be appointed by the three largest shareholders by the end of August, the timing seems perfect.”
GiG also announced in February that it would be conducting a strategic review on the opportunity to split up its media arm from its sports betting solution and platform division and Schlosser commented “let’s wait until we know more as shareholders who would have to approve any such operation, depending on the outcome of such strategic review and what is recommended then by the Board from a shareholder’s value creation perspective, based on current and future opportunities.
He noted that the group’s first quarter results demonstrated “the strength of its strategy, but also the underlying quality of the management team that drives such growth day-to-day”.
He added: “What makes GIG platform and sportsbook offers unique is not only the quality of its software and the related service offering, but the fact that the company is focused on regulated markets. This differentiates us clearly from a lot of competitors, and will be a key asset in the future to secure shareholder value”.