Aristocrat acquisition of Playtech in limbo as JKO handed extension
FTSE 250 supplier postpones shareholder meeting to sanction sale as JKO threatens Aristocrat deal
Playtech has aborted its upcoming shareholder meeting vote on the proposed acquisition of the firm by slots manufacturing giant Aristocrat.
The original meeting, scheduled for 12 January, has been postponed until 2 February with Playtech continuing to court interest from Eddie Jordan-backed entity JKO Play following its initial approach in November.
In December, JKO had been given until 5 January 2022 to announce its firm intention to make an offer for Playtech.
However, as a result of Playtech’s decision to delay the shareholder meeting, JKO has now been given until 26 January to confirm its intention to make a firm offer.
In October, Aristocrat and Playtech agreed on a cash acquisition deal that valued Playtech at 680p per share.
In a statement reacting to the news of postponement of the shareholder vote, Aristocrat said delays would merely result in uncertainty for Playtech stakeholders.
The statement read: “Aristocrat’s recommended acquisition remains the only firm offer that has been made for Playtech. The recommended acquisition provides attractive value in cash and enhanced regulatory and financial certainty for Playtech shareholders.
“Aristocrat further notes that any other potential bidders have already had a substantial amount of time to make an alternative proposal for Playtech. The decision to further delay the relevant shareholder meetings extends the period of uncertainty for all Playtech stakeholders.”
Playtech confirmed discussions with JKO were “progressing”, hence the decision to extend the timeline to allow the firm to develop its potential offer for the London-listed supplier.
However, Playtech conceded a concrete bid from JKO may not materialise, despite the changes to the schedule.
Playtech said: “There remains no certainty that JKO’s approach will result in an offer for the company, nor as to the terms on which any offer might be made.”
Playtech shares closed at 739.46p on Tuesday 4 January and were down 1.3% in early trading the following morning.