18th Nov 2021 09:34
(Alliance News) - Playtech PLC on Thursday confirmed it has received takeover interest from a third party, a month after backing an offer by Australia's Aristocrat Leisure Ltd.
The gambling software provider confirmed that on November 5, it received a preliminary approach from JKO Play Ltd. JKO is controlled by Eddie Jordan and Keith O'Loughlin.
On Wednesday, Sky News reported Eddie Jordan, the former Formula One team-owner, is part of a consortium plotting a GBP3 billion-plus counterbid for the FTSE 250 stock. Sky News had said a firm founded by Jordan is working with a US-based investor - thought to be Centerbridge Partners LP - on financing an offer for Playtech.
Playtech shares were 4.1% higher at 771.00 pence each in London on Thursday morning, valuing the company at GBP2.30 billion. The stock is up 92% so far in 2021.
Playtech on Thursday confirmed JKO "was in discussions with Centerbridge" and others in regard to the provision of institutional debt and structured capital funding.
"Diligence remains on-going and no financing commitment has been provided by Centerbridge. Other sources of debt finance are also being considered," Playtech said.
This third approach follows Gopher Investments making an approach for the company - just days after Playtech accepted Aristocrat Leisure Ltd's GBP2.1 billion offer.
Playtech said it received the offer from Gopher on October 21. On October 17, it had 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.
Playtech has provided JKO access to "due diligence information", in line with the UK Takeover Code.
In response, Aristocrat said: "Aristocrat and Playtech are continuing to work together to implement the recommended acquisition. The regulatory approval process is on track with the timetable previously announced and Aristocrat is focussed on progressing this quickly."
Aristocrat also outlined the some of the funding that it has in place for the Playtech deal, suggesting it still believes it is in pole position to seal the buy.
"Aristocrat has committed certain funds to fund the recommended acquisition with financing facilities in place and has completed an equity raise of AUD1.3 billion [about GBP701.2 million] with strong take-up from Aristocrat shareholders. In addition, based on feedback from the credit rating agencies, Aristocrat may therefore be considered an investment grade credit rating upon close of the recommended acquisition."
Aristocrat also pointed out that it holds gaming licences in more than 335 jurisdictions, including in the US, and has long-term relationships with regulators globally. This, it said, "positions us to complete the transaction as planned in the second quarter of calendar year 2022".
Aristocrat shares closed down 3.6% at AUD45.64 on the ASX in Sydney on Thursday.
By Eric Cunha; [email protected]
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