Yesterday, Playtech investor Gopher Investments made a case regarding its proposal to acquire the financial trading division of the gambling software developer. The move comes weeks after Playtech said yes to another group’s offer to buy the assets.
Now, Gopher Investments, which is the second-largest shareholder of the British gambling software company with its almost 5% stake, said that Playtech’s rejection of its $250-million offer a week ago did not portrait properly the advantages of its acquisition bid.
As mentioned above, in May 2021, Playtech agreed to sell Finalto, its financial trading division, to another company – a consortium led by Barinboim, an Israel-based private-equity group. The deal’s price tag was set at up to $210 million.
At the time when it defended its proposal on July 6th, Gopher Investments shared that it had already earmarked some funds for the purchase and was pretty sure it would get all the approvals needed for the completion of the deal. It also urged investors to vote against the acquisition proposal of Barinboim at the Board’s meeting that is set to take place on July 15th.
According to Gopher Investment, Playtech’s Board should adjourn the General Meeting and engage in negotiations with Gopher over a recommended takeover deal that would deliver materially better value for the gambling software operator‘s assets.
Finalto Generates Rapid Growth Although Not a Core Asset for Playtech
The financial trading unit of Playtech was established over two decades ago by Teddy Sagi. Although Finalto has not been one of the most crucial assets of the gambling software developer, it has managed to generate rapid growth. Furthermore, the volatility of the market that was brought on by the coronavirus pandemic outbreak has made the financial trading assets an attractive acquisition target for potential buyers.
After its second-largest shareholder called for the Board to reconsider its decision for the sale of the financial trading unit, Playtech refused to comment. However, last week, the gambling software company announced it was already bound by the agreement it had made with Barinboim, so the timing of Gopher’s takeover bid make it very difficult for it to take the offer into consideration and assess it.
SpringOwl Asset Management, a US activist investor that has urged Playtech to sell its Finalto business for years, sent an email statement to Reuters to confirm it also support the takeover offer made by Gopher Investment. Jason Ader, CEO of SpringOwl, wrote that the company supported Playtech’s new Chairman and urged him to take Gopher’s bid into serious consideration.
Reuters revealed that the biggest shareholder of Playtech – Setanta Asset Management – and other major shareholders, such as Aberdeen Standard Investments and Schroders, did not immediately respond to its requests for comment. Reportedly, the shareholder advisory group ISS has made a recommendation to shareholders to vote against the already approved Barinboim-led takeover bid.
- Author
Olivia Cole
