Playtech reiterates Aristocrat support amid company break-up reports
Media reports suggest board of directors considering radical contingency plans if takeover bid fails to win shareholder approval including auction of business units
Playtech has reiterated its recommendation for those present to vote in favour of Aristocrat’s £2.1bn (A$2.7bn) offer at the company’s shareholder meeting on 2 February.
The statement released to the London Stock Exchange follows reports on Tuesday evening that appeared on Sky News insinuating that should Aristocrat’s takeover fail to get through the shareholder vote, there was a contingency plan in place to dismantle the business and sell its operations individually.
The London-listed gambling technology supplier reaffirmed its strong advice to shareholders saying: “Whilst Playtech has made significant strategic and operational progress and is in a strong position for the future, Aristocrat’s proposal provides an attractive opportunity for shareholders to accelerate the delivery of Playtech’s longer-term values.”
The latest twist in the Playtech saga comes five days after JKO Play announced that it was withdrawing from the race leaving Aristocrat as the only solid bidder.
There are a number of large stakeholders based in Asia who do not feel the deal represents value for money and are seeking to block any move to sell the company.
Amid news of the shareholder unrest, Playtech’s share price took another hit having recovered slightly since the news of JKO’s withdrawal on 21 January.
Five days ago, the share price dropped to 613p per share but as of Wednesday morning is now up to 622p per share. This is still way below the 680p offer from Aristocrat and lower still than the price in which some major investors purchased stock, some of whom did so at over 700p.
The shareholder meeting will take place on 2 February, having been postponed from 12 January to give JKO more time to put a bid together.