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Emmett Investment Management LP, a stakeholder in PlayAGS, has voiced its opposition to the company’s proposed take-private transaction with Brightstar Capital Partners.
In an open letter addressed to PlayAGS stockholders, Emmett outlined its intention to vote against the transaction, citing concerns over the perceived undervaluation of the company.
The letter, released on 14 May, highlights Emmett’s reservations about the Brightstar transaction and its potential impact on PlayAGS stockholders.
Recognising the company’s achievements and growth prospects, Emmett believes the proposed take-private deal does not adequately reflect PlayAGS’ value.
Emmett emphasises PlayAGS’ positive first-quarter results, which showcased significant organic adjusted EBITDA growth, outpacing industry standards.
The company’s success in the interactive segment, coupled with its expanding product portfolio, reinforces Emmett’s optimistic outlook for AGS’s future performance.
The investment management firm goes on to question the timing of the Brightstar bid, which coincided with the release of PlayAGS’ first-quarter results. Emmett suggests that the bid may have influenced the market perception of PlayAGS’ value, potentially undervaluing the company’s shares.
Moreover, Emmett highlights PlayAGS’ anticipated benefits from market disruption following the merger of IGT and Everi, which could further enhance the company’s market share and revenue potential.
Emmett argues that Brightstar’s offer fails to account for this significant upside and may deprive stockholders of future value.
In related news, back in 2023, PlayAGS appointed Adam Chibib as the company’s new Chairman. Chibib stepped into the role in place of David Sambur, who had previously resigned from the Board after five years as Chairman and three as a Board member.
