Aristocrat Leisure, which has already reached an agreement on the £2.1-billion acquisition of Playtech, has called for the City’s takeover regulator to seek clarity over the intentions of a number of Asian investors who hold a large stake in the British gambling software provider.
As revealed by Sky News, Aristocrat Leisure and Playtech have gotten in contact with the Takeover Panel to seek a determination that the group of Asian investors is acting as a concert party.
The last few weeks have seen market analysts a bit perplexed, amid the ongoing stake-building in the Far East at a price that surpasses the price of 680p a share that was agreed between Aristocrat Leisure and Playtech for the proposed acquisition.
Currently, the Asian investors hold a stake of over 20% in Playtech, and reports show that they may even have a combined stake that is large enough to make it possible for them to block the deal. Under the terms of the offer, the British gambling software provider needs no less than 75% of voting shareholders to back the proposed Aristocrat takeover bid.
As it was revealed by people with knowledge of the matter, the intentions of the Asian investors remain unknown for the time being. They do not even exclude the possibility for the investors to be willing to acquire the unregulated gambling businesses of Playtech in Asia.
The Possibility of a Heated Bidding War Looms over Proposed Takeover Offer
In its takeover offer documents, Aristocrat Leisure has stated that it will not operate in or provide services into any market that could put the existing licences of the combined group in danger. The Australian gambling operator, however, has shared that it would consider a possible closure or sale of any operation or business vertical that risked doing so.
One person familiar with the matter shared their concern because of the Takeover Panel’s ability to extract sufficient information to enable it to rule whether the Asian shareholders of Playtech were acting in concert. Such a ruling would have affected their chances to continue enhancing their holding in the gambling software developer and is likely to trigger a mandatory offer on their part in case their combined stake is larger than 29.9%.
The uncertainty regarding the potential blocking stake comes a few weeks after Gopher Investments, a company that has strong links to Asian entrepreneurs, officially announced its decision to withdraw from the competition for Playtech’s business after having explored a possible counterbid. Earlier in 2021, Gopher Investments has participated in a heated bidding war to take over the financial trading arm of Playtech – Finalto – at the price of $250 million.
On the other hand, Aristocrat Leisure and Playtech may need to hurry up if they want to close the acquisition deal, as a potential offer led by Eddie Jordan, a former Formula One team owner, is looming over their agreement. As Casino Guardian previously reported, Mr Jordan and his partners from JKO Play have been preparing an acquisition bid estimated at about 750p a share that could get them the Playtech board’s recommendation.
- Author
Olivia Cole
