Playtech opens door for Hong Kong investment group takeover
FTSE 250 supplier’s shares up 13% as it forgoes restriction period on TTB Partners after shareholders rejected Aristocrat’s bid
Playtech has given the go-ahead for a potential all-cash takeover offer by Hong Kong-based investment firm TTB Partners following the collapse of Aristocrat’s bid to purchase the supplier.
Aristocrat saw its £2.7bn attempt to secure Playtech scuppered yesterday, 2 February, as the 75% threshold of shareholder approval was not met.
Only 56.13% of shareholders voted for the deal to proceed, with the remaining 43.87% led by a group of Asia-based investors rebuffing the move by the slots manufacturing giant.
However, Playtech has now opened the door for yet another attempted takeover by granting TTB Partners an offer period ahead of schedule.
TTB Partners was bound by restrictions in accordance with the City Code on Takeovers and Mergers which meant it was blocked from making a new offer for six months. This would have ended on 20 May 2022.
This six-month period was implemented following confirmation by Gopher Investments, an affiliate of TTB Partners, that it had pulled out of the race to acquire Playtech in November 2021.
TTB Partners are required to confirm their intentions by 17 June 2022. News of the potential offer sent Playtech’s shares soaring 13%, although at the time of writing they were up 10% at 646p.
Playtech said: “There can be no certainty as to whether this will result in an offer for the company, nor as to the terms on which any offer might be made. However, any offer, if made, is likely to be in cash.”
Elsewhere, Playtech confirmed it anticipates its adjusted EBITDA for the year ended 31 December 2021 will exceed management’s previous expectations.
The supplier said the positive financial results were based on strong B2B growth driven by Caliente in Europe and its B2C Snaitech brand in Italy recording a “very strong performance driven by continued online strength and recovery in its retail business”.