Releases Open Letter to AGS Stockholders Outlining Intention to Vote AGAINST Inadequate Proposal
NEW YORK, May 14, 2024 /PRNewswire/ -- Emmett Investment Management LP ("Emmett"), an investment manager focused on small and mid-cap equities across developed markets and owner of approximately 1.5% of the outstanding stock of PlayAGS, Inc. (NYSE:AGS)("AGS" or the "Company"), today released an open letter to AGS stockholders outlining its intention to vote AGAINST the Company's inadequate proposed take-private transaction with Brightstar Capital Partners, which it believes significantly undervalues the Company.
The full text of the letter follows:
May 14, 2024
Dear Fellow Stockholders,
Emmett Investment Management LP (together with its affiliates, "Emmett" or "we") currently owns approximately 1.5% of the outstanding stock of PlayAGS, Inc. ("AGS" or the "Company"), making us one of the Company's largest active stockholders. We have great respect for the Company, its management team, and operational strategy. We enjoyed visiting the Company's headquarters in early April and came away impressed by the increased scale and depth of the current product offering, with over 60 unique game titles produced in 2023, relative to just 30 in 2019.
We feel compelled to share with you our concerns about AGS's recently announced take-private transaction with Brightstar Capital Partners ("Brightstar"). We do not believe the take-private transaction is in the best interest of stockholders, and we intend to vote against the transaction.
The Brightstar transaction was announced just hours before the release of AGS's transformational first quarter results. The Company's first quarter results reinforce our optimistic view of AGS's prospects, as organic adjusted EBITDA grew 21%, far outpacing the industry. Business mix is also improving at AGS: adjusted EBITDA from the Company's interactive segment, to which the market assigns the highest multiple, increased almost 9x year-over-year and almost 50% sequentially.
If market participants had been given the opportunity to digest first quarter results absent Brightstar's bid, we believe AGS shares would be trading well above the current market price of ...