Playtech Linked with ‘Break-Up’ Sale if Aristocrat Acquisition Fails

02 february 2022
Author: James Burton
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The major company Playtech has addressed the frequent reports which point out that the group could be selling the assets in parts if the response to Aristocrat's desire to acquire it is not issued soon.

Playtech linked with ‘break-up’ sale if Aristocrat purchase fails

What Does This Mean?

Some media state that along with Playtech being sold, its subsidiary business Snaitech could also fall apart. However, this is only possible in a scenario where the group somehow does not get acquired by Aristocrat.

In 2021, Aristocrat, which is a popular casino provider from Australia, came out with the intention to make Playtech its subdivision. The deal was reported to be worth 2.70 billion GBP.

It is also known that during a director meeting at Playtech, the executives strongly advised voting in favour of the acquisition of Aristocrat since they believed it would bring more stability to the group's business.

Recent Concerns

Despite the general belief that Aristocrat will go through with the lucrative offer, Playtech issued a statement, in which the organisation admitted that the deal is not certain yet. A few stakeholders are still unsure about their votes. The meeting, scheduled for the beginning of February, is about to take place, yet the group still has not heard from multiple investors.

Due to the lack of certainty regarding the decisions of those who support the firm financially, Playtech has no clear idea where they stand in the issue of acquisition. Some media are now speculating about the business being sold in parts if the deal does not happen in the end.

Playtech's worries lie around the decision of a few select stakeholders from Asia who are yet to give their response. The stakes owned by them make about a quarter of the general number of shares. For the operation to become successful, at least three-quarters of the shareowners will have to vote in favour of it.

Comments from Playtech

The business representatives did not confirm whether the reports about selling the company in parts in case the deal fails are true. However, they expressed their hopes that all the stakeholders would vote in favour of the acquisition.

In the company's statement, the officials acknowledge the efforts of Playtech to become the organisation it is today and its major development. Nonetheless, they are of the opinion that Aristocrat's offer may make the firm potentially more valuable in the future.

JKO Play's Offer

Before Aristocrat made its bid on the business enterprise, there was another acquisition offer from JKO Play. However, since then, this group has officially revoked the proposal, paving a way for their competitor to make a move.

JKO Play first prepared an offer in late 2021. It resulted in Playtech putting their negotiations with Aristocrat on hold and focusing on the possible partnership with another enterprise that was expressing its interest in this acquisition. Originally, it had to make a formal request until the beginning of January, which was later postponed to February.

The experts expected that the bidder would provide an answer before the deadline. But, the company has eventually withdrawn its intentions by making an official statement about not being interested in the acquisition anymore. Originally, it was expected for any buyer to take over Playtech’s business in spring 2022.

History of Cooperation with Aristocrat

At the end of 2020, Playtech has made a crucial step towards being acquired by the fellow company, as its trading department was sold. This means that the offer of Aristocrat would gain validity in this case.

One more organisation that was initially interested in the acquisition of Playtech was the Gopher firm. However, it dropped its proposal at the early stages, making it possible for Aristocrat to step in.

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