SEAH (Sports Entertainment Acquisition Corp.) has been confirmed to go public through a merger with Super group, to create a New York stock exchange-listed international gaming company. As the transaction is completed, the combined company’s stock would trade under the symbol “SGHC” on the New York Stock Exchange. SEAH stock surged after the news.
Sports Entertainment Acquisition Corp. (SEAH) has advanced 10.57% at $8.08 in premarket trading. Shares of the company fluctuated between $9.765 and $9.87 throughout the day. The stock price has shed -6.95% over the last three months and has lost -3.36 percent so far this year. Further, the company has a current market of $1.01 billion and its outstanding shares stood at 56.25 million.
SEAH has confirmed for merger with Super Group in accordance to a $4.75 billion pre-money equity valuation. The transaction is expected to deliver almost $450 million of cash (presently in trust) to the merged company. Furthermore, Super Group’s existing shareholders will hold 88% of the shares in the combined company at the completion of the deal. In accordance to the agreement, the group will consist of $200 million in cash on its balance sheet at the time of completion.
The combination with SEAH will give Super Group easier entry into capital markets and will provide a platform to increase market share and speed up its global growth strategy, as well as expansion into the fast-growing U.S. online sports betting and gaming market.
More than 70% of Super Group’s shareholders, will not be selling the stock they own and roll their whole equity positions into the public company. The Board of directors of both companies has unanimously approved the merger decision.
Super Group is trying immensely to capitalize on the growth in the online betting and gaming market, which is estimated to reach beyond $100 billion by 2025, according to H2 Capital. The transaction between the companies should yield high capital due to cost synergies and the complementary nature of their business.
Through proper marketing, an emphasis for market penetration, and technology the Super group has a proven history for entering and building leadership positions in lucrative markets worldwide. Furthermore, targeting the fasted growing US market and lucrative mergers has peaked investor expectation for the company.