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Playtech Renews TTB’s Deadline Despite a Lack of Clear Intent
By Shane Addinall Jun 25, 2022 IndustryReports of continuous discussions between Playtech and TTB Partners indicate a possible bid from the Asian company, but a lack of clear intention from them causes doubt. Nevertheless, Playtech gave TTB more time.The deadline for TTB to express its intent for the acquisition of Playtech expired on 17 June 2022. An official announcement from Playtech PLC confirms the continuous talks between itself and the Hong Kong-based investment group, TTB Partners. Following the lapse of the 28-day window period, the Panel on Takeovers and Mergers approved an official request to grant TTB more time.
Although Playtech explicitly mentions the uncertainty of an actual offer from the Asian investors, the UK gaming company remains hopeful and in active negotiations with TTB. Reports cite that if an offer comes through, it will exceed that of the Australian gambling giant, Aristocrat.
Playtech shares improved slightly since the news broke of the extension, and the company’s CEO can breathe a sigh of relief as his position remains intact for at least another month.
Pass Go and Collect 28 More Days
On Friday, 17 June 2022, Playtech filed a notice to confirm the extension of TTB Partners’ deadline. Anticipating an offer for either the entire company or parts thereof, the Independent Committee of the Board of Playtech announced they believe it to be in the best interest of all relevant parties that discussions continue. As such, they gave TTB until 5 pm on 15 July 2022 to table an offer.
The release explains that although TTB has not made a firm offer yet, visible progress in the continued discussions justifies the extension. Regardless of the progress noted in their statement, Playtech clarifies the announcement does not mean there is the certainty of an offer. It also doesn’t state the existence of a firm offer or the terms of such an offer.
Playtech’s Independent Committee argues discussions need to continue. Subsequently, the committee applied for an extension with the Panel on Takeovers and Mergers. Under rules 2.6 and 2.7 of the Code, the approved request stipulates that TTB must state its firm intention of making an offer or announce that it will not do so by the said time and date.
Is TTB Really Interested?
TTB approached Playtech in February this year to request a waiver of a legally binding waiting period imposed on them by a conflict of interest. The Hong Kong-based investment company advised Gopher Investments on its offer to gain Playtech late in 2021.
The withdrawal of Gopher’s offer led to a restriction on TTB. Purportedly, TTB Partners would form and advise a new group of investors to bid on acquiring Playtech, thus sparking the request for the exception.
Playtech politely declined, which placed TTB under a six-month waiting period. During this time, the investment group gained the support of Playtech’s current CEO, Mor Weizer. This strengthened the group’s position for a successful acquisition, yet no firm offer exists months later.
Weizer boldly put his position on the line, as a failed bidding process would lead to his termination. The CEO commented that he understood the consequences of him backing the new suitor.
The Final Countdown for Finalto Buy-out
Playtech is ready to wrap up the sale of its financial trading company, Finalto, to Gopher. In a press release, the London-based company confirmed that Gopher met all regulatory requirements and the deal will close at the end of June.
As the lengthy task of breaking ties with Finalto winds down, Playtech stakeholders may reach an agreement with TTB Partners and its unnamed group of investors.
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