Apollo Global Management, a prominent private equity firm, is preparing to release its entire stake in PlayAGS, making 8,208,076 shares of common stock available for purchase.
Apollo is essentially offering its shares at a nominal price of one cent per share. However, this selloff won’t directly benefit PlayAGS financially, as they are not the selling entity.
This action suggests that PlayAGS may be seeking additional capital, potentially indicating a new phase for the company.
JPMorgan and B. Riley Securities, two major Wall Street players, will manage the sale and leverage their expertise to identify potential buyers. They will employ various strategies, including direct engagement with institutional investors, trading on the New York Stock Exchange, and private negotiations.
The share price will likely be influenced by the urgency to sell.
This development follows the unsuccessful merger attempt between PlayAGS and Inspired Entertainment earlier this year.
The agreement crumbled, resulting in neither party gaining anything. Apollo’s choice to unload its PlayAGS shares following the merger’s failure is causing surprise. Although the precise motivations are still unclear, one thing is certain: financial experts will be diligently trying to understand this unforeseen development.