The former Formula One team owner Eddie Jordan is currently part of a bigger group that is planning to make a counterbid estimated at £3 billion for the Isle of Man-based gambling software developer Playtech.
As reported by Sky News, a company founded by Mr Jordan is collaborating with an investor that is currently thought to be Centerbridge Partners on making and financing an acquisition bid for the gambling software provider. According to reports, the consortium is believed to have already made a preliminary approach to the advisors of the London Stock Exchange-listed company.
If such an offer is actually made, the bid is likely to trigger a fierce takeover battle for the assets of Playtech, which current market capitalisation is estimated at a bit over £2.2 million. According to reports, the merchant banking boutique Global Leisure Partners is acting as an advisor to the consortium associated with Mr Jordan.
Sky News said that, according to a person familiar with the situation, if materialised, the offer of the consortium linked to Mr Jordan would be structured partly in cash and in contingent value rights (CVRs) depending on the value of the stake that Playtech would get in its joint venture with Caliente, a gambling company that is currently mostly focused on the Mexican market. For the time being, the two companies are having negotiations over a potential merger through a special purpose acquisition company (SPAC).
Playtech Gave the Nod to Proposed 680p-a-share Takeover Offer of Aristocrat Leisure
The potential involvement of the former F1-team owner in the bidding process now adds another layer of intrigue to the competition for the gambling software developer, that has been one of the hottest takeover targets in the London Stock Exchange market so far in 2021.
Ever since Mr Jordan disposed of his F1 team in 2005, he has been involved in various businesses. He has also become a media expert on the sport. Most recently, the Irish businessman has joined forces with the former Scientific Games executive Keith O’Loughlin to establish JKO Capital, which is aimed at identifying deal opportunities in the global gaming arena.
Until last night, it was still not clear whether the consortium involving Mr Jordan intends to make a firm offer for Playtech, especially considering the complexity of the proposed bid.
As Casino Guardian previously reported, Playtech’s Board of Directors and the company’s largest shareholder had backed the takeover offer made by the Australian poker machine manufacturer Aristocrat Leisure, which estimates the gambling software provider at 680p-a-share. Later, the company confirmed the acquisition bid was approved, it also shared that its second-largest shareholder, Gopher Investments, was also evaluating the offer in collaboration with Rothschild bankers.
Under the terms of the deal that was proposed by Aristocrat Leisure and approved by the shareholders of Playtech, a number of irrevocable undertakings would become invalid in case any competitor suitor offered a takeover price for the company that is at least 10% higher than its offer. This basically means that any other potential suitor would have to offer at least 748p-a-share in order to be preferred by the gambling software provider’s board.