Playtech discusses Gopher and Aristocrat’s bidding war
Sky News reported on Sunday that Gopher, a Hong Kong-based investment company with a 5% stake in Playtech, will submit an estimated £3 bln counterproposal, igniting a bidding battle with ASX competitor Aristocrat Leisure. As things stand, Playtech’s management has proposed Aristocrat’s £2.7bln buyout proposal to investors, a choice made previous to Gopher’s involvement.
In response to the advancements, Playtech put out a statement noting that on October 21st, three days after the official proposal of Aristocrat’s deal, Gopher made a “preliminary approach” requesting careful analysis data in an attempt to “investigate a prospective bid for all of Playtech’s existing and future share capital.”
As Gopher’s involvement stays “at an early level and continuous,” Playtech maintains its investor endorsement of Aristocrat’s 680p per share cash offer. As a result, there can be no assurance that Gopher’s inquiry will lead to an offering for the Company or that any offer would be made on favorable terms.”
Gopher, which is advised by Rothschild & Co, is set to announce its initial proposal for Playtech on Monday. Aristocrat’s reaction will be widely watched since the ASX business must meet numerous conditions to buy Playtech, including obtaining shareholder permission to purchase Finalto.
Finalto , Playtech’s financial brokerage, is still up for sale, as the business is involved in a bidding contest among Gopher and Tel Aviv private equity fund Barinboim Group. Aristocrat said that it had gained the power to an £865m increase in equity to guarantee its all-cash transaction and clear Playtech’s current £600m debt notes.
Trevor Croker, Group CEO of Aristocrat, highlighted the deal maker’s objectives to build the leading offline and online gaming B2B technology supplier for tier – 1 gambling organizations operating through all markets in the transaction proposal.