19th Nov 2021 12:29
(Alliance News) - Playtech PLC shares fell on Friday after one of its long list of admirers pulled out of the running to acquire the gambling software firm.
The stock was 2.1% lower at 754.00 pence each in London on Friday afternoon, valuing the company at GBP2.30 billion. It was 0.6% higher earlier in the session.
Gopher Investments, which holds just shy of a 5.0% stake in Playtech, said it does not plan on mounting a takeover a bid.
"Today's announcement has no bearing on Gopher's agreement to acquire Playtech's financial trading division, Finalto. Gopher remains fully committed to the acquisition. The process is ongoing and is expected to complete in H1 2022," Gopher added.
In late September, Playtech agreed to sell Finalto, its financial trading division, to Gopher for an enterprise value of USD250 million in cash.
It means it is now a two-horse race to acquire the FTSE 250 listing, with Australia's Aristocrat Leisure Ltd in the running after making a GBP2.1 billion takeover bid, 680p per share. In addition, Playtech on Thursday confirmed it received takeover interest from a third party, just one month after backing an offer by gambling machines and casino management systems maker Aristocrat.
Playtech 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 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 on Thursday confirmed JKO "was in discussions with Centerbridge" and others in regard to the provision of institutional debt and structured capital funding.
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," it said.
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 ended down 1.6% at AUD44.90 each in Sydney on Friday.
By Eric Cunha; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Playtech