The Shareholders Foundation announces that an investigation on behalf of investors, who currently hold shares of Multimedia Games Holding Company Inc (NASDAQ:MGAM), is ongoing concerning whether the takeover of Multimedia Games Holding Company Inc by Global Cash Access Holdings for $36.50 per share is unfair to NASDAQ:MGAM stockholders.
Investors who purchased shares of Multimedia Games Holding Company Inc (NASDAQ:MGAM) and currently hold any of those NASDAQ:MGAM shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm concerns whether certain officers and directors of Multimedia Games Holding Company Inc breached their fiduciary duties owed to NASDAQ:MGAM investors in connection with the proposed acquisition.
On September 8, 2014, Global Cash Access Holdings, Inc. and Multimedia Games Holding Company Inc (NASDAQ:MGAM) announced that they have entered into a merger agreement whereby Global Cash Access Holdings, Inc has agreed to acquire all the outstanding common stock of Multimedia Games Holding Company Inc for $36.50 per share, for an aggregate purchase price of approximately $1.2 billion in cash.
However, given that at least one analyst has set the high target price for NASDAQ:MGAM shares at $40.00 per share and that NASDAQ:MGAM shares traded in August 2013 as high as $39.24 per share, the investigation concerns whether the offer is unfair to ,NASDAQ:MGAM stockholders. More specifically, the investigation concerns whether the Multimedia Games Holding Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders’ best interests in connection with the proposed sale.
Multimedia Games Holding Company Inc reported that its Total Revenue rose from $127.86 million for the 12 months period that ended on September 30, 2011 to $189.37 million for the 12 months period that ended on September 30, 2013 and that its Net Income for those respective time periods increased from $5.68 million to $34.92 million.
Shares of Multimedia Games Holding Company Inc (NASDAQ:MGAM) grew from $4.08 per share in October 2011 to as high as $39.24 per share in August 2013.
On September 30, 2014, NASDAQ:MGAM shares closed at $36.01 per share.
Those who are current investors in Multimedia Games Holding Company Inc shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com