Media reports on 2 February indicated that TTB had requested Playtech to release it from certain restrictions in order for TTB to potentially make an offer. Playtech confirmed on 3 February that it agreed to the request, but cautioned that there is no guarantee of an offer. Playtech also stated that any offer from TTB would likely be in cash.
The restrictions on TTB were imposed by the City Code on Takeovers and Mergers due to its role in advising Gopher Investments, a minority shareholder in Playtech, regarding a potential takeover offer. Gopher expressed interest in making a bid in November but withdrew from the competition a few weeks later. These restrictions were initially set to last for six months from the withdrawal date, until 20 May. However, they have now been lifted, allowing TTB to proceed with forming its own offer.
Currently, there is no deadline for any potential offer from TTB. Last year, Gopher agreed to acquire Playtech’s Finalto financial trading division, with the completion expected in Q2 2022 pending regulatory clearance and approval from shareholders.
The possibility of a TTB offer arises following the failure of Aristocrat’s proposed acquisition of Playtech to secure sufficient shareholder backing in a vote held recently. Only 56.13% of Playtech shareholders, representing 140.5 million shares, voted in favor of the bid at a court meeting, and 54.68% did so at a general meeting. These numbers fell well below the required 75% threshold for approval. Shareholders representing 43.87% of the business voted against the deal.
JKO Play had also been in talks for a potential acquisition of Playtech but withdrew from the process last month. Prior to the TTB talks becoming public, Playtech’s board had stated that the company could be sold off in parts, a possibility first suggested last month.
