Playtech Awaiting Details from Gopher on Finalto Bid
Playtech (LON: PTEC) has announced a delay to its general meeting in which shareholders are due to vote on a proposal to sell Finalto, the Company's financial trading division. The meeting will now be taking place on August 18 after Playtech failed to receive enough details from the rival bidder Gopher Investments about its offer.
The meeting was initially scheduled for July 15, and shareholders were set to discuss an offer from the investment business Barinboim Group, which the Playtech board had already approved. However, this was then delayed when Gopher Investments made a rival bid worth up to $250 million.
Gopher requested that Playtech delay its meeting in order to negotiate the bid, which resulted in the meeting being postponed to July 29. However, it has now been pushed back as Playtech said that it still lacks clarity on important details.
Playtech has expressed some concerns over Gopher's ownership structure, specifically, whether it would cause regulatory problems in completing the deal, particularly if Gopher's ownership has links to China.
The proposal received from Gopher Investments is uncertain in terms of its deliverability, principally because it is not binding in nature and remains subject to a number of conditions. Under the restrictions in the sale and purchase agreement entered into with the Consortium on May 26, 2021… the Company is not entitled to directly engage with Gopher.
Despite this statement, the companies have been talking over the last few weeks, and Playtech is trying to obtain details on Gopher's ownership, funding structure, and potential regulatory approval of the deal.
Gopher was initially keen to cooperate; however, clearly, Playtech is still waiting for answers before continuing with negotiations. Nonetheless, the fact that it has delayed its meeting again suggests that Playtech is still very interested in the offer. In the meantime, Playtech's board continues to support the Barinboim deal.