Better Collective acquisition of Playmaker Capital nears completion following shareholder approval
Toronto-based digital media group’s shareholders give almost unanimous support to the €176m initial tender offer
Playmaker Capital shareholders have given their overwhelming approval to Better Collective’s proposed €176m deal to acquire the business.
At a special meeting of shareholders, held on 22 January, 99.9% of shareholders backed the deal which will see Better Collective complete its second largest acquisition to date.
The transaction required the approval of at least two-thirds of the votes cast by shareholders, with that benchmark being cleared with ease.
The deal is still subject to receipt of a final order from the Ontario Superior Court of Justice, approval from the Minister of Canadian Heritage and satisfaction or waiver of the other conditions to closing contained in the agreement.
The transaction is expected to close in early February.
Better Collective first announced the multi-million-euro deal in November which will see the Danish giant acquire Playmaker via a combination of cash and shares.
Under the terms of the deal, the affiliate and the media group will enter a structured agreement in which Playmaker shareholders can choose to receive either C$0.70 in cash or 0.0206 shares of Better Collective per Playmaker common share.
These transactions are prorated and are subject to an aggregate cap of 65% shares in Better Collective and 35% in cash.
Those shareholders who do not elect to receive either option will be given C$0.245 in cash and 0.0134 shares in Better Collective by default.
The cash portion of the arrangement will be paid by existing cash and established bank credit facilities.
Playmaker Capital owns a substantial portfolio of media businesses focused on the Americas such as Latam-facing Futbol sites, US-based firm Yardbarker and Canada-facing media firm The Nation Network.
Once the deal has been completed, Playmaker Capital will be delisted from the Toronto Stock Exchange, and the group will become part of the wider Better Collective Group.
At the time of the initial offer, the affiliate said that once its acquisition of Playmaker has been completed, it will revise its long-term financial targets through to 2027.