Playtech puts off Aristocrat takeover talks

Playtech puts off Aristocrat takeover talks

Published: January 9, 2022

Playtech, a world-leading online casino content supplier, has postponed a scheduled shareholder conference to discuss an acquisition offer from Aristocrat. Instead, it will hold meetings with JKO Play concerning its potential bid.

Aristocrat agreed to purchase Playtech in a transaction worth roughly $3.65bn. Additionally, the general and court meetings related to the offer were supposed to transpire on January 12, 2022.

However, the new conferences are planned for February 2 to give JKO Play more time to arrange a rival bid. The potential buyer must state its position regarding the purchase and place a bid by January 26, 2022, at 5 pm.

JKO Play is an enterprise controlled by Eddie Jordan, former Formula 1 team proprietor and Keith O’Loughlin, a seasoned industry veteran. It appeared as a potential buyer and an interested party for the Playtech purchase in November 2021.

The company is yet to make an official bid, but it has received the necessary due diligence information. It has maintained contact with Playtech since the initial approach last November.

Moreover, Playtech said the thorough discussions were in progress, so JKO Play has asked for more time. With the deadline approaching, it is expected to develop a potential takeover bid shortly.

The original deadline for submitting an official offer was January 5, 2022, and it was agreed upon by all, including Aristocrat. However, Playtech said that the delay did not mean JKO play would place an official offer.

Its board of directors still recommends that shareholders vote for the Aristocrat bid, noting it would mean liquidity and certainty. Furthermore, Aristocrat reacted to the delay by stating its offer was the only firm one.

Other potential bidders have had enough time to act and provide alternative proposals. Putting off shareholder meetings prolongs the uncertainty period for all the stakeholders.

The takeover arrangement was supposed to go through in Q2 2022. Playtech shareholders agreed upon the sale of Finalto, its financial trading division.

Gopher Investments was the buyer, and it was a pivotal step necessary for the Aristocrat agreement to come into force. Gopher was among the interested parties to acquire Playtech but gave up two weeks later.

About Playtech

Playtech is an iGaming industry trailblazer and leader established in 1999, with a team of 6,400, dispersed across twenty-four countries. It is one of the essential service suppliers and a proud partner of numerous reputable online casinos.

Its rich gaming software portfolio includes poker, bingo, sports betting, slots and live casino games. A pioneer of omnichannel gaming, it provides top-class services and solutions.

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