21st Jan 2022 13:35
(Alliance News) - FTSE 250-listed Playtech PLC is set to end up in Australian hands after suitor JKO Play on Friday confirmed it does not plan on making a bid to buy the gambling software company.
JKO Play is controlled by Keith O'Loughlin and Eddie Jordan, the former boss of a Formula One team.
JKO pulling out of the race means Sydney-listed Aristocrat Leisure Ltd is on track to snap up FTSE 250 constituent Playtech.
Playtech had previously agreed to be acquired by Aristocrat Leisure Ltd in mid-October for GBP2.1 billion, but delayed a vote on the deal until February 2 to give JKO more time to prepare an offer.
Playtech had received an approach by JKO back in November.
The Financial Times reported JKO planned to sell Playtech's Italian arm, Snaitech, to Ladbrokes owner Entain PLC. The FT, citing two people involved with the process, said the potential Italy sale to Entain would have helped JKO fund the Playtech deal.
Back in December, Paddy Power owner Flutter Entertainment PLC agreed to acquire online gaming firm Sisal from CVC Capital Partners Fund for EUR1.91 billion in a bid to establish "a gold medal position" in the Italian market.
Playtech shares tumbled 22% to 571.50 pence in London on Friday. Broker Peel Hunt offered an optimistic outlook, however.
"The bid process has triggered an intense focus on Playtech's value and it is clear that there is value to be extracted from Playtech's interest in Caliente in Mexico and, we believe, from the Italian B2C business. We reiterate our Hold recommendation and 680p target price," Peel said.
The race to acquire Playtech, while yet to see the finish line, has seen several twists and turns.
Existing shareholder Gopher Investments, one of Playtech's long list of admirers, pulled out of the running to acquire the company back in November.
Gopher, however, agreed to buy Playtech's Finalto financial trading division for an enterprise value of USD250 million in cash back in September.
Aristocrat's bid was made in October and it followed numerous approaches earlier in 2021.
By Eric Cunha; [email protected]
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