Scientific Games (SGMS) - Get Report was climbing Monday after billionaire Ronald Perelman agreed to sell his stake in the gambling products company to a group of investors including the Australian firm Caledonia.
Shares of the Las Vegas company, which makes electronic gaming machines and server-based lottery and gaming systems, were rising 41.2% to $26.78.
The investors will acquire Perelman’s 34.9% stake in the company from the billionaire's firm MacAndrews & Forbes for $28 a share, Scientific Games said in a statement.
Caledonia will add Jamie Odell, former CEO of the Australian gambling company Aristocrat Leisure, and Toni Korsanos, former chief financial officer, to the board along with an additional independent non-executive director, the company said.
Perelman and two other executives from MacAndrews & Forbes will step down.
The overhauled board will focus on reducing debt and increasing digital gaming and sports better opportunities.
Caledonia's other current gaming investment is DraftKings (DKNG) - Get Report, and it also has stakes in companies such as Grubhub (GRUB) - Get Report, Warner Music (WMG) - Get Report, and Zillow Group (Z) - Get Report.
Perelman has been reportedly selling off assets recently. In July, he sold his 70% stake in Humvee maker AM General, for $1 billion, roughly the same price he paid for the company in 2004.
In addition, Perelman, a majority owner and chairman of Revlon, last year hired Goldman Sachs to “explore strategic alternatives” for the cosmetics company where $3 billion in loans came due this year, according to Fortune.
The New York Post reported that Perelman is entertaining offers for his Hamptons property known as “The Creeks” for around $180 million. A spokesperson denied the property, one of the biggest in the Hamptons, was for sale.
Perelman told Vanity Fair in a statement that he desires “a less complicated and less leveraged business life.”