TTB has announced that it will not proceed with its proposed bid for Playtech due to challenging market conditions. However, TTB expressed continued support for Playtech’s board and executive management team, as well as their strategy and business prospects.
The initial approach from TTB to Playtech was made in February of this year, when TTB requested to be released from certain restrictions in order to form and potentially make an offer. These restrictions were put in place by the City Code on Takeovers and Mergers, as TTB had advised minority shareholder Gopher Investments on a potential takeover offer for Playtech. Although Gopher initially registered interest in bidding, they later dropped out. The restrictions on TTB were set to remain in place for six months following Gopher’s withdrawal, until May 20. Playtech chose not to lift these restrictions but ultimately announced an intention to bid deadline of June 17, which was later extended to July 15.
This request for release from restrictions followed the rejection of a bid for Playtech by shareholders from Aristocrat Leisure, a bid that had been recommended by Playtech’s board. In response to TTB’s announcement, Playtech expressed confidence in the positive long-term outlook for the group, citing recent strong trading performance in both their core B2B and B2C businesses.
For the first half of the 2022 financial year, Playtech expects adjusted EBITDA to exceed €200m, driven by the momentum in the Americas and across its wider B2B operations. Playtech also highlighted the excellent performance of its Snaitech business, attributing it to online growth, retail recovery, and favorable sports results. Playtech’s CEO, Mor Weizer, emphasized the company’s momentum and confidence in future growth prospects.
Playtech’s share price experienced a significant drop from £5.21 to £4.16 following the announcement. TTB’s withdrawal from the bidding process comes after Playtech completed the sale of its Finalto financial trading division to Gopher for $250m, resolving a year-long battle for control of the business. Gopher’s bid prevailed over a consortium led by Barinboim Group.
Playtech is now evaluating options to maximize value for its shareholders and remains committed to its B2B business and Italian market presence through Snai. The board believes they have the right strategy and team in place to deliver long-term growth and benefit from new gambling market opportunities.
