TTB Partners gains extended deadline to signal Playtech takeover intentions

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Playtech has asserted that takeover discussions alongside TTB Partners “are ongoing and progress continues to be made,” as an extended deadline to clarify final intentions is issued.

The gambling tech firm stated that its independent committee believes that allowing “additional time for discussions to further develop is in the best interests of the company’s shareholders and other stakeholders”.

Following acceptance by the Panel on Takeovers and Mergers, in accordance with rule 2.6 of the Code TTB is now required, by 5pm on July 15, 2022, to either announce its firm intention to make a takeover offer or disclose that it does not intend to pursue such a move. This deadline may only be further extended with the consent of the panel.

This comes after the board of Playtech was contacted by TTB Partners, on behalf of an investor group to be formed and advised by it, requesting that Playtech consent to release from restrictions under rule 2.8 of the City Code on Mergers and Acquisitions to allow an offer for the company to be considered.

On November 19, 2021, Gopher Investments, an affiliate of TTB, confirmed that it had no intention of making an offer for Playtech and, as a result, the group was bound by the restrictions imposed for a period of six months.

However, without this release consent being granted, TTB was bound by the restrictions, which as of May 20, 2022, expired.

Prior acquisitive overtures by Gopher Investments, a 4.97 per cent shareholder that this week finalised the purchase of Playtech’s Finalto financial services division, met one of the key conditions of Aristocrat’s attempted buyout of the firm.

However, Gopher formally dropped out of the race in November, one day after JKO Play, a 0.51 per cent shareholder in Playtech, entered the fray, before it too withdrew from the takeover battle earlier in the year.

In February, it was confirmed that Aristocrat’s offer had been rejected after the total votes cast in favour of the resolution at a general meeting was 54.68 per cent, which fell some way below the minimum threshold of 75 per cent that was needed to approve the transaction.

Furthermore, it is added that TTB has previously indicated to the board that it expects any offer, if made, will be at a higher value than the recommended cash acquisition by Aristocrat of 680p per share, announced on October 17, 2021.