Playtech postpones annual general meeting for takeover!

Playtech postpones Aristocrat takeover meeting amid ongoing JKO talks

Playtech has postponed its scheduled stockholders meeting to approve a takeover bid from Aristocrat in order to allow additional time for discussions with JKO Play about a potential competing bid.

Australian slots maker Aristocrat agreed to acquire Playtech in October 2021 in a deal worth around 2,7 billion.

However, this has now been postponed to February 2, 2022 to allow JKO Play more time to develop the terms of a potential takeover bid for the gaming tech giant.

JKO Play has until January 26, 2022 at 17 p.m. to clarify its position and indicate whether it will bid.

JKO Play is a company controlled by former Formula 1 team owner Eddie Jordan and industry veteran Keith O'Loughlin. In November 2021, they emerged as a potential bidder for Playtech.

While still an offer, JKO Play has received due diligence information and has remained engaged with Playtech since the initial approach in November.

Playtech said these talks are progressing and as such JKO Play has asked for more time to develop a possible takeover bid.

JKO Play was initially given until January 5, 2022 to submit a firm offer for Playtech - a deadline agreed by both parties and Aristocrat.
However, this appointment has now been postponed to the day of the debriefing.

"Given the circumstances, the Board of Directors deems it necessary, in the interests of Playtech shareholders, to postpone the Annual General Meeting scheduled for the implementation of the Aristocrat Offer on January 12th.

However, Playtech also said that despite an adjournment of the shareholders' meeting, there is no certainty that JKO Play's approach will result in an offer, nor any certainty as to the terms on which an offer may be made nne.

Playtech added its directors would continue to unanimously recommend that shareholders vote for the Aristocrat bid, saying it would offer "safety and liquidity."

In response to the delay, Aristocrat reiterated that its offer is the only firm offer on the table and offers "attractive cash value and enhanced regulatory and financial certainty for Playtech shareholders."

"Aristocrat also notes that all other potential bidders have already had plenty of time to submit an alternative proposal for Playtech," Aristocrat said. "The decision to further postpone the relevant shareholder meetings extends the period of uncertainty for all Playtech stakeholders."

Originally it was hoped that a takeover deal would be completed in the second quarter of 2022.

In December of last year, Playtech shareholders approved the sale of its financial trading division, Finalto, to Gopher Investments, a key step required for the deal with Aristocrat to become effective.

Gopher had also previously expressed interest in acquiring Playtech, but pulled out of the race two weeks later.

Source: igaming business (IGB)