WMS cancels stock offering

Thursday, Sept. 30, 1999 | 11:49 a.m.

THE ASSOCIATED PRESS

CHICAGO -- Game maker WMS Industries Inc. cancelled a planned 3.5 million-share secondary offering due to the current market price of the company's stock.

WMS stock closed at $11.6875 Wednesday, up 6.25 cents a share, but still below the projected $12 offering price anticipated in the sale prospectus. When WMS first announced the proposed offering, its stock was trading between $16 and $17 a share.

In announcing the offering cancellation, WMS said it was "unwilling to issue new shares at the current market price, which management believes doesn't fairly reflect the value of the company."

WMS had hoped to generate net proceeds of $39.2 million to $45.1 million (if underwriters exercised their over-allotment options to buy another half million shares) for funding research and development, acquiring businesses or intellectual property rights and for working capital.

The company had about $60 million of cash and equivalents as of June 30 and no long-term debt.

WMS designs slot machines and pinball games. Billionaire media mogul Sumner Redstone owns about 7.2 million of the 30.5 million WMS shares outstanding.