Playtech to engage Gopher after shareholders vote against Finalto sale


Playtech is to engage with Gopher Investments regarding a sale of its Finalto financial service decision, after a prior resolution was voted down by shareholders.

The long-mooted sale saw Playtech confirm a $210m divestment to a consortium led by Barinboim Group, and backed by Leumi Partners and Menora Mivtachim Insurance, earlier this year. 

However, Gopher, a 4.97 per cent shareholder in Playtech, issued an indicative non-binding conditional offer to acquire Finalto for $250m, with the inclusion of a reverse break fee of $10m

After numerous statements from each party, which earlier this month saw Playtech say that it “is currently not in a position to change its recommendation” away from the consortium, the gambling tech firm confirmed that “at the general meeting held earlier today, the resolution to approve the disposal of Finalto to the consortium was not passed”.

Due to the latest development, which saw 68.3 per cent against the proposal as opposed to 31.7 per cent for, the consortium and Playtech have agreed to immediately terminate the sales and purchase agreement.

As a result, the restrictions placed upon the group from engaging with Gopher are no longer in place, with Playtech asserting that it intends to seek to engage the group to progress a disposal of Finalto.

“Although the consortium has agreed to terminate the SPA, it has indicated to Playtech it intends to maintain the consortium for the next 30 days, such that it will be in a position to re-enter into the SPA if the parties so agree,” Playtech updates. 

“In the event a new binding agreement is reached with any party a new circular to shareholders will be required, with a general meeting to approve the disposal.

“The board’s stated strategy remains to simplify Playtech’s business and to dispose of Finalto for the maximum available proceeds. 

“Having consulted with its leading shareholders, Playtech understands that by voting against the resolution to dispose of Finalto to the consortium, shareholders have been willing to accept the risk of the SPA terminating, thereby enabling Playtech to engage with Gopher and to potentially secure better terms for a sale of Finalto.”