Australia: Laurence Escalante moves to take full control of Virtual Gaming Worlds

Perth-based billionaire Laurence Escalante has launched a bid to take full ownership of Virtual Gaming Worlds (VGW), proposing the acquisition of all outstanding shares in a deal that values the online gaming company he founded at AUD 3.2 billion ($2 billion).

Escalante, who already controls approximately 70% of VGW through his family office, Lance East Office, has offered AUD 5.05 per share or AUD 950 million ($617 million) to minority shareholders via a special purpose company established for the buyout.

The proposed acquisition follows months of tension between Escalante and smaller investors, some of whom raised concerns over declining transparency. In April, Escalante drew attention after making a profanity-laced outburst in a private chat group while addressing shareholder grievances.

VGW confirmed the offer on Monday, noting that the proposed deal values the company at about three times its projected EBITDA for the 12 months ending December 31, 2024. The transaction remains subject to shareholder approval, excluding Escalante and affiliated entities.

A special committee of VGW directors has recommended that minority shareholders, who hold the remaining 30% stake, vote in favor of the scheme of arrangement. This recommendation comes after Escalante’s earlier bid, pitched at between $3.30 and $4 per share, was rejected in February on the grounds that it undervalued the business.

Revised terms of the offer allow existing shareholders the option to retain their stakes if they choose not to sell. Independent directors Mike Symons and Mats Johnson backed the deal, citing the certainty of near-term value and the limited liquidity in VGW shares due to the company’s unlisted status.

“Given that Mr. Escalante and his affiliates hold approximately 70% of all VGW shares, the VGW independent directors consider that an alternative superior proposal is unlikely to emerge,” said Symons in the company’s statement.

Escalante, whose net worth was recently estimated at AUD 4.5 billion by the 2025 Financial Review Rich List, attributed his wealth increase to strong revenue performance from VGW. Speaking on the proposed buyout, he described VGW as “a fantastic business” and acknowledged the contributions of existing shareholders.

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

The offer includes provisions for any dividends paid prior to completion to be deducted from the per-share consideration.