8th Nov 2021 10:29
(Alliance News) - Playtech PLC on Monday confirmed Gopher Investments made an approach for the company - a couple of days after it accepted Aristocrat Leisure Ltd's GBP2.1 billion offer.
Shares in the FTSE 250-listed gambling software firm were 2.3% higher in London on Monday morning at 724.22 pence on the prospect of a bidding war heating up.
Playtech said it received the offer from Gopher on October 21. On October 17, it backed a GBP2.1 billion takeover from Sydney-listed Aristocrat Leisure.
The 680 pence offer from Aristocrat, which manufactures gambling machines and casino management systems and also publishes mobile games, was a 58% premium to Playtech's 429.2p per share closing price the last trading day before the offer. The offer values Playtech's equity at GBP2.1 billion. On an enterprise basis, meaning including debt, it values the company at GBP2.7 billion.
On Monday, Playtech said Gopher asked for "certain due diligence information" to allow it to "explore terms on which a possible offer" will be made after the Aristocrat offer.
"Discussions with Gopher are at an early stage and ongoing. As such, there can be no certainty that Gopher's approach will result in an offer for the company, nor as to the terms on which any offer might be made," Playtech added.
In late September, Playtech agreed to sell Finalto, its financial trading division, to Gopher for an enterprise value of USD250 million in cash. The sale is subject to Playtech shareholder approval, and if granted, the acquisition is expected to be completed in the first half of 2022.
Trying to sway Playtech shareholders should a Gopher offer materialise, Aristocrat said its "firm" offer provides "certain value" for Playtech shareholders.
"Aristocrat will continue to work with Playtech to progress the recommended acquisition and urges Playtech shareholders to vote in favour of the Aristocrat recommended acquisition at the shareholder meetings when the scheme document has been published," it added.
By Paul McGowan; [email protected]
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