Laurence Escalante’s bid company for VGW on the move to tax haven of Guernsey

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Laurence Escalante’s bid company for VGW on the move to tax haven of Guernsey

Laurence Escalante’s bid to take full control of the Virtual Gaming Worlds online casino empire also involves shifting the company behind the bid to the tax haven of Guernsey.

The colourful billionaire on Monday launched an offer to buy out ********* investors holding the 30 per cent of VGW that he doesn’t already own.

The offer was presented via Ocean Bidco Limited — an unlisted special purpose company established by Mr Escalante’s family office, Lance East Office.

It has now been revealed that company was registered in Guernsey,

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*********** Securities and Investments Commission documents show Ocean Bidco was registered with the corporate regulator on April 30 in Subiaco as a foreign company.

The billionaire has already won support for his sweetened $950 million proposal.

The tentative tick comes four months after company directors rejected a buy-out offer from Mr Escalante pitched at between $3.30 and $4 for reasons including that it undervalued the North America-focused business.

VGW on Monday said that negotiations between Mr Escalante had improved conditions, including giving the flexibility for existing VGW shareholders to retain their investment in the business.

The company is facing an increasingly hardline approach by some US state agencies in the fragmented market.

VGW is closing its New York sweepstakes operations and has recently been hit with shutdown orders in Delaware and Maryland.

According to The ***********, shifting Ocean Bidco to Guernsey would end requirements for VGW to file annual financial reports with ASIC and it would not be governed by the Corporations Act.

VGW last year booked a 30 per cent hike in net profit of $492 million from revenue of $6.1 billion. It paid $185m of corporate tax, according to The ***********.

Independent directors Mike Symons and Mats Johnson believed the scheme of arrangement was in the best interests of VGW shareholders

Mr Symons said the independent directors believed the offer reflected the medium term value of the business after considering its potential and the ongoing risks it faced.

Softer trading conditions in recent months had affected financial expectations for 2025. “VGW operates in an environment with rapidly evolving US regulatory developments and faces increasing industry competition,” he said.

Mr Escalante said VGW was “a fantastic business” and he thanked all shareholders for their support in helping to build the company.

“As the regulatory, competitive and economic landscape evolves, we face many new opportunities but also challenges and uncertainties,” he said.

“For some time now, many VGW shareholders have asked how and when a liquidity event may arise. The scheme represents an efficient opportunity to allow those shareholders looking to monetise their investment for cash to do so.

“For those VGW shareholders who decide to elect for cash consideration, I thank you for your support to this point.”

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