Gopher Investments makes rival approach to acquire Playtech
London-listed supplier’s second-biggest shareholder to challenge Aristocrat’s accepted £2.7bn offer
Playtech is engaged in “early stage and ongoing” discussions with its second largest shareholder Gopher Investments over a potential acquisition of the gambling software supplier.
The Playtech board provided Gopher with access to due diligence information after being approached by the asset investment firm on 21 October, just three days after Playtech announced its intention to accept a £2.7bn buyout approach from Australian B2B giant Aristocrat.
Playtech’s share price climbed by 3% in early trading on the London Stock Exchange on Monday, although the company told investors there can be no certainty that Gopher’s approach will result in a concrete offer for the business.
Terms of Gopher’s potential counteroffer remain undisclosed. The fund currently owns nearly 5% in Playtech shares via an affiliate association with TT Bond Partners.
It also boasts a pre-existing relationship with the provider having sealed a $250m deal to purchase its non-core financial trading division Finalto in September.
Responding to the competition, Aristocrat defended its proposal, which valued Playtech at £680p per share, representing a premium of 58.4% on the closing price as of 15 October (£429.2p).
“Aristocrat’s long-term engagement with regulators across key gaming jurisdictions, together with strong financial fundamentals, deep customer relationships and established presence in global gaming markets, positions Aristocrat to complete the transaction as planned in the second quarter of calendar year 2022,” said the supplier in a statement on 8 November.
“Aristocrat believes that this will provide certain value to Playtech shareholders, while the combined group will also provide greater opportunities to Playtech employees.”