Playtech delays decision on £2.7bn takeover from Aristocrat
Playtech, the gambling technology group, has delayed a decision on a £2.7bn takeover bid from Aristocrat, fuelling hopes of a bidding war as a rival suitor, JKO Play, has been given more time to make its offer.
Playtech, which provides software for gambling companies to power their live casinos, said in a statement on Wednesday that “discussions with JKO are progressing. JKO has asked that it be provided with more time to develop the terms of its potential offer for the company.”
The UK’s Takeover Panel has revised the deadline given to JKO to announce a firm intention to make an offer for Playtech to January 26, 2022, from January 5. Playtech pushed back the date to approve the offer from Aristocrat Leisure to February 2.
The company agreed in October to a £2.7bn takeover offer from Aristocrat, an Australian gambling machine manufacturer, subject to conditions.
Playtech, founded by Israeli billionaire Teddy Sagi in 1999, was then wooed in November by JKO, a group controlled by the former Formula One boss Eddie Jordan and a former Scientific Games executive. The consortium has been engaging with the company since its approach, which reports have said would be worth more than £3bn.
But Playtech directors continue to advocate that shareholders “vote in favour of the Aristocrat offer”, the company said.
Aristocrat said it was “pleased to note the recent recommendations to Playtech shareholders from proxy advisers to vote in favour of all the resolutions to implement the Recommended Acquisition”.
The regulatory approvals process is “well on track” and it is “committed to completing the acquisition as quickly as possible”, it added.
The deal hinges on the outcome of talks around listing Playtech’s joint venture with Caliente in the US by way of a Spac, according to those familiar with the matter.
Aristocrat is the only one of the two bidders to have gained regulatory approval to operate in the US, as businesses seek to take advantage of the legalisation of sports betting and online gaming in more states including Michigan.
Shares in Playtech weakened on Wednesday after the announcement, dropping by almost 2 per cent, from 732.5p to 720p.