Playtech takes Caliplay disagreement to court in England
By Iain Gilbert
Date: Monday 06 Feb 2023
(Sharecast News) - Software firm Playtech has taken its ongoing dispute with Mexican gaming operator and joint venture partner Caliente to court in England.
Playtech's dispute with Caliente relates to the pair's Caliplay joint venture, under which the FTSE 250-listed provides its software, technology and other assorted services to the Tijuana-based group.
The agreement between the two companies includes an option relating to fees, which Caliplay demands is still valid but Playtech argues has expired.
Playtech said: "The option was structured such that the amount payable by Caliplay to Playtech upon exercise would either be agreed between the parties, or failing which, determined by an independent investment bank valuing Playtech's current entitlement to receive the additional services fee until 31 December 2034. For the six months ended 30 June 2022, the amount of this services fee was €34.4m (€22.3m for the six months ended 30 June 2021) and the business has continued to perform strongly since then.
"The option is stated as being exercisable for a period of 45 days following the approval of the audited accounts of Caliplay for the year ended 31 December 2021. Playtech believes the option has expired and referred to its expiry having taken place in its interim report for the six-month period ended 30 June 2022, which was published on 22 September 2022. Whilst Caliplay has not sought to exercise the option to date, Caliplay has made it clear that it considers the option has not yet expired."
As of 0925 GMT, Playtech shares were down 0.60% at 580.50p.
Reporting by Iain Gilbert at Sharecast.com
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