Eddie Jordan-fronted JKO pulls out of Playtech race

The ongoing saga surrounding the future of Playtech looks as though it may be finally ending as Eddie Jordan-fronted JKO Play Ltd (JKO) threw in the towel over plans to purchase the FTSE 250 supplier.

JKO made its first play for Playtech back in November when it was announced that due diligence had been sought by the newly formed leisure company set up by the former F1 team owner and Keith O’Loughlin, former SVP of sportsbook and platforms at Scientific Games.

As it stands, Australian gaming and technology giant Aristocrat’s bid of £2.7bn (680p per share) is the only offer on the table.

Earlier this month, JKO was granted further time to make a formal bid after exhausting the time on its 5 January deadline.

That deadline was extended until the 26 January as Playtech postponed the date of its shareholder meeting from the 12 January to 2 February.

There appears to be scepticism around whether a deal can be achieved however, with a number of key Playtech shareholders yet to ascertain whether they approve of the Aristocrat deal.

Playtech said in a statement that it “unanimously recommends” its shareholders to vote for the sale.

Yet following the news of JKO’s withdrawal, shares in Playtech plunged more than 16% (118p) to 613p in trading this morning on the London Stock Exchange.

This took the price per share well below the 680p offer from Aristocrat and lower still than the price in which stock was bought by some major investors, some of whom purchased at over 700p.

Another interested party, Gopher Investments, pulled out of the race to buy Playtech in December.

One way or another, a decision will be made on the 2 February when Playtech convenes for its delayed shareholder meeting.