3rd Aug 2021 12:03
(Alliance News) - Gopher Investments on Tuesday called for fellow Playtech PLC shareholders to reject a rival's offer for the Finalto unit in favour of its own.
Playtech announced in May that it had agreed to sell its Finalto business to a consortium led by Barinboim Group and members of unit's management team, for up to USD210 million.
Gopher, which has 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."
Shares in Playtech were up 0.3% to 371.40 pence in London on Tuesday morning.
Playtech is an Isle of Man-based company that makes software used in online gambling. Finalto is its financial trading division. Gopher is an affiliate of TTB Partners, a Hong Kong-based investment and advisory firm.
Gopher said it is "highly disappointed with the board of Playtech's decision not to change its recommendation."
"Gopher responded promptly to an initial information request from the board, relating to Gopher's financing and its high confidence of regulatory approval," the firm said.
"Gopher encourages Playtech shareholders to vote against the consortium's offer, in line with the current recommendations of proxy advisors Glass Lewis, ISS and PIRC."
Shareholders will vote on the Barinboim consortium's offer at a general meeting on August 18.
By Ivan Edwards; [email protected]
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