Gaming industry backer Ronald Perelman, not to be confused with Sons of Anarchy and Hellboy actor Ron Perlman, is looking to lighten his load. The chairman of Scientific Games Corp. (Sci Games) is reportedly looking to get rid of his entire stake in the company, a move that seems a little ill-timed, given the fact that Sci Games has seen its stock drop from a 2020 high of $30.24 on February 12 to its current price of $16.19. Regardless, people have the right to do what they want with their money, and perhaps the 79th richest man in the U.S., according to Forbes, has good reason for wanting to back away.
In a filing with the Securities and Exchange Commission (SEC) yesterday, Sci Games indicated that Perelman is considering selling off his 39% stake, a position he maintains through direct and indirect holdings attributed to several companies, including MacAndrews & Forbes, an investment vehicle that also owns stock in companies such as Revlon, AM General and more. He is only exploring his options, according to the statement and still hasn’t “formulated any specific or definitive plan or proposal.” In addition, “there can be no assurance that any transaction will occur or as to the terms of any such transaction.”
Bloomberg was able to get more information regarding the possible deal and, in a statement it received from MacAndrews & Forbes, the firm indicated, “Due to changes in the world both socially and economically, we have decided to reset MacAndrews & Forbes in a manner that will give us maximum flexibility both financially and personally. This will allow us to be opportunistic and flexible in looking at new situations.”
It was only a year ago that Perelman broke out the wallet to increase his stake in the company. In June of last year, he was said to have spent about $4.60 million to pick up 230,000 shares. Since then, and primarily due to the coronavirus, the company’s stock has seen its ups and downs. That’s good news for any potential buyer, as the selling price would be almost guaranteed to see substantial returns moving forward.