Gopher Initiates Takeover Talks with Playtech
Published: November 12, 2021
Playtech has unveiled Gopher Investments approaching it with a counter takeover offer, though they have already accepted the one from Aristocrat. The previously arranged deal was worth roughly $3.64bn (enterprise value).
However, it seems the takeover saga is not over. Gopher, a Playtech minority shareholder, has made a preliminary offer to acquire the company’s operations that could be worth $4.08bn.
Playtech has confirmed it has received an offer from Gopher, mere days after the deal with Aristocrat was made. It hasn’t disclosed its details, though.
The talks are in the early stages, and there is no certainty they will end with Gopher making a firm offer. Playtech’s deal with Aristocrat depends on multiple conditions, including the acquisition of their financial trading division, Finalto.
Incidentally, the company about to acquire Finalto is none other than Gopher. The two companies reached an agreement in September 2021, and the deal worth $250m was sealed.
Gopher has obtained Finalto by emerging with an all-cash offer after Playtech accepted the bid from the Barinboim Group ($210m).
Aristocrat has published an answer regarding the Gopher approach, saying that extensive engagement from both sides has resulted in reaching the agreement. The two companies have led the discussions since April 2021 and have settled on a firm offer from Aristocrat.
The company is sure it will complete the transaction in the second quarter of 2022. It believes it will bring multiple new opportunities to both Playtech employees and their players.
The expected buyer will continue to work on advancing the transaction as recommended. Aristocrat has also urged Playtech shareholders to vote in favor of the proposed purchase at the meetings.
The Playtech shares are currently going up, while the Aristocrat shares are dropping by 2.13%. The destiny of Playtech is still largely unknown, but the closure on the matter is expected to arrive in the following weeks.
Playtech is a gaming industry leader with nearly 6,500 employees in 24 countries. The company collaborates with multiple prominent online casinos, land-based casino groups and lotteries in countless regulated markets.