Playtech Evaluates Alternatives As Aristocrat Deal Likely To Fail

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Playtech said it is evaluating “attractive M&A proposals” as it expects the shareholder vote on Aristocrat Holdings' buyout proposal later today will not pass.

Proxy votes received so far indicate that the 75 percent threshold needed to approve the Aristocrat deal will not be reached, so the offer will lapse, the company said.

Instead, the board will consider offers from third parties the company has received for its B2B and consumer-facing businesses.

“Any proposal or proposals, if agreed, are expected to be subject to shareholder approval, as well as regulatory and other clearances,” the company said.

Details of voting will be announced as soon as they are compiled.

In January, potential bidder JKO said it was withdrawing from the race to acquire Playtech, reportedly due to concerns that a group of Asian investors that bought into the online gambling company could block the deal.

JKO, an investment vehicle for former Formula One owner Eddie Jordan, had been considering an offer of 750 pence per share.

"Playtech remains in a strong position and continues to perform very well across its core B2B and B2C businesses” chief executive Mor Weizer said today.

“We remain confident in our long-term growth prospects and, in particular, our ability to benefit from the structured agreements (including Caliente) that are already allowing Playtech to access newly opened gaming markets,” he said.

Strong growth in B2B in North and South America, and in Europe with Snaitech’s strong consumer-facing business, led the company to say that its group adjusted EBITDA for 2021 “is expected to exceed management's previous expectations”.

Playtech also expects to complete the sale of its Finalto financial trading unit in the second quarter of this year following receipt of final regulatory clearances, the company said.

Today's announcement spurred London-based analysts at Peel Hunt to upgrade their Playtech recommendation to "buy" from "add".

The firm's share price on the London Stock Exchange was largely unchanged in early trading on Wednesday.