18th Aug 2021 12:36
(Alliance News) - Playtech PLC shareholders on Wednesday rejected a proposal for the gambling software firm to sell its financial trading division to a consortium for USD210 million.
Just over 68% of voters at Wednesday's general meeting rejected the proposal, which would have seen the Finalto business sold to a consortium led by Barinboim Group and members of the division's management team. It now paves the way for Gopher Investments, another suitor, to re-enter talks to buy Finalto.
Gopher earlier in August urged Playtech shareholders to reject the Barinboim-led deal, which Playtech had announced in May.
Gopher, which has about a 5.0% stake in Playtech, then made its own USD250 million offer for Finalto. But Playtech decided to stick with the original deal, saying Gopher's bid was non-binding and that it was not clear on "Gopher's ultimate ownership and funding structure, source of funds or ability to obtain the required regulatory clearances."
Ahead of the vote, Glass Lewis on Tuesday joined fellow proxy advisory firms ISS and PIRC in advising shareholders to reject the consortium bid.
Because Wednesday's vote was rejected, there are no longer any restrictions on Playtech entering talks with Gopher. However, the consortium has not given up on buying Finalto.
"The company will now seek to engage with Gopher to progress a disposal of Finalto. Although the consortium has agreed to terminate the sale and purchase agreement, it has indicated to Playtech it intends to maintain the consortium for the next 30 days, such that it will be in a position to re-enter into the [sale and purchase agreement] if the parties so agree," Playtech added.
"Playtech understands that by voting against the resolution to dispose of Finalto to the consortium, shareholders have been willing to accept the risk of the SPA terminating, thereby enabling Playtech to engage with Gopher and to potentially secure better terms for a sale of Finalto."
Playtech shares were 0.9% higher at 393.60 pence each in London on Wednesday afternoon.
By Eric Cunha; [email protected]
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