Playtech urges approval of Aristocrat bid after report of possible breakup
By Frank Prenesti
Date: Wednesday 26 Jan 2022
(Sharecast News) - Gambling software maker Playtech has again urged shareholders to accept a £2.7bn takeover offer from Australia's Aristocrat Leisure after reports it is planning a breakup and sale of the group if the bid is blocked by a bloc of Asia-based investors.
Sky News reported that Playtech's directors and its investment banking advisers are discussing dismantling the group, citing unnamed sources.
"Playtech notes recent media speculation on the Company's future strategy. The board of directors reiterates its recommendation that shareholders vote in favour of the offer from Aristocrat Leisure," the company said in a statement on Wednesday.
"Whilst Playtech has made significant strategic and operational progress and is in a strong position for the future, Aristocrat's proposal provides an attractive opportunity for shareholders to accelerate the delivery of Playtech's longer-term value."
Directors led by chairman Brian Mattingley were reportedly said to be concerned that a group of Asian investors which own around 25% of Playtech's stock could vote in concert to prevent the Aristocrat deal going through.
As a result, the board and its advisers at Wells Fargo, Jefferies and Goodbody had started plans plans to auction its operations in case next week's vote - which requires the approval of 75% of voting shareholders - fails, the Sky report stated.
Former Formula One boss Eddie Jordan pulled his rival offer last week as Playtech's board warned that new investors with major stakes have not "engaged meaningfully" on the original approach.
Jordan, who was bidding through the acquisition vehicle JKO, was ready to offer 750p a share for Playtech, but withdrew over concerns that the group of Asian investors with a recently-amassed 27.7% stake would block the deal.
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