Light & Wonder's Bold Leap: Shifting Sole Focus to the Australian Securities Exchange

In a significant strategic maneuver, global cross-platform games company Light & Wonder (NASDAQ: LNW) is poised to make a bold move, consolidating its stock market presence by pursuing a sole primary listing on the Australian Securities Exchange (ASX). This decisive shift will see the company delist from the Nasdaq Global Select Market, marking a new chapter in its corporate trajectory.

The highly anticipated delisting from Nasdaq is slated to become effective around August 23, 2024, subject to the finalization of the company’s Australian listing arrangements.

This pivotal decision comes after Light & Wonder initially established a foreign exempt listing on the ASX in May 2022, while maintaining Nasdaq as its primary listing venue. The transition signifies a deeper commitment to the Australian market and a streamlining of its operational structure.

At the heart of this strategic realignment is the desire to simplify compliance and significantly reduce costs.

Light & Wonder has openly cited the removal of "cumbersome U.S. regulatory requirements" as a key driver for the move. By centralizing its primary listing, the company anticipates a notable reduction in administrative burdens and associated expenditures, freeing up resources that can be reallocated towards innovation and growth initiatives.

Matt Wilson, Light & Wonder’s President and CEO, who is based in Australia, underscored the strategic advantages of this move.

He emphasized that the sole ASX listing would provide "further operational and financial flexibility," positioning the company for enhanced agility in its global operations. This sentiment was echoed by financial analysts, with Jefferies' David Katz noting that the transition could lead to a reduction in general and administrative expenses, a potential improvement in valuation, and the establishment of a "pure-play" Australian listing, which could be attractive to a new segment of investors.

While Light & Wonder shares will continue to trade on Nasdaq until the official delisting date, the company will remain subject to U.S.

reporting requirements for a transitional period. The ultimate goal is to deregister from the U.S. Securities and Exchange Commission (SEC) after filing its 2024 annual report, provided certain conditions are met, primarily having fewer than 300 U.S. resident shareholders. This step would complete the decoupling from U.S.

regulatory oversight, fully embracing its Australian market focus.

To facilitate this complex transition, Light & Wonder is implementing a "scheme of arrangement" with an Australian subsidiary. This intricate corporate mechanism is designed to ensure a seamless shift for shareholders, enabling them to convert their existing holdings into shares listed on the ASX.

The move is expected to be well-received by the market, given its potential to enhance liquidity on the ASX for LNW shares and offer a clearer investment proposition rooted in a single, well-defined regulatory environment.

This bold strategic pivot underscores Light & Wonder’s commitment to optimizing its corporate structure, enhancing shareholder value, and solidifying its position as a leading force in the global gaming and lottery technology sectors.

The gaming giant is not just changing its address on the stock market; it's redefining its operational backbone for a more focused and agile future.