Playtech is trying to develop a strategy for possible disposal of its operations in case the proposed £2.1-billion acquisition deal with Aristocrat Leisure is blocked by some Asian investors.
As reported by Sky News, some directors and investment banking advisers of Playtech are discussing a full break-up of the British gambling software provider, whose market value is currently estimated at a little less than £1.9 billion. According to people close to the process, such a break-up could force the company to sell its business-to-business division and its Italian consumer division Snaitech separately. However, it would only be initiated in case the £2.1-billion takeover of the group by Aristocrat Leisure fails.
Reports claim that a number of directors led by chairman Brian Mattingley are concerned that a group of Asian shareholders that currently own approximately 25% of the British gambling software provider’s stock could act in concert in order to block the proposed deal that would see Aristocrat Leisure take over Playtech’s assets.
As a result, the company’s board and its advisers at Jefferies, Wells Fargo, and Goodbody have started considering other options, including initiating an auction for Playtech’s operations in case the vote on the proposed takeover deal fails. The vote, which is set to take place in the following week, requires the approval of three-thirds (75%) of voting shareholders in order for the proposed acquisition to pass.
Asian Shareholders May Act in Concert to Block the Proposed £2.1-Billion Acquisition
The aforementioned preparations gained momentum last week, when another takeover offer led by Eddie Jordan, a former Formula One team owner, was withdrawn, mostly because of concerns associated with the intentions of the same Asian shareholders that could now block the successful completion of the Aristocrat acquisition.
Previously, media hubs reported that both Playtech and Aristocrat Leisure had gotten in contact with the Takeover Panel seeking a determination that the group of Asian investors is acting in concert.
A spokesperson for Playtech confirmed that the company’s board reiterated its recommendation of the proposed deal with Aristocrat Leisure. The spokesperson of the British gambling software developer further noted that whilst significant strategic and operational progress had been made by Playtech, which seems to be keeping its strong position for the future, the takeover proposal made by the Australian gambling machine manufacturer offered an attractive opportunity for its investors to accelerate the delivery of the long-term strategies of Playtech.
For the time being, Playtech is considered the largest online gaming and sports betting software on a global scale. The company’s enterprise value, including debt, has been estimated at over £2.5 billion.
As previously reported by Casino Guardian, Aristocrat Leisure agreed to pay a price of 680p-per-share for the British gambling software provider, although the price of Playtech’s shares fell well below that level at the close of trading on January 24th.
- Author
Olivia Cole
