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Playtech (PTEC) bidding war looms as JKO Play enters fray

By Jenni Reid

12:19, 18 November 2021

Playtech logo on a phone
Gambling software firm Playtech may find itself subject to a three-way bidding war – Photo: Shutterstock

Gambling software firm Playtech (PTEC) has confirmed the emergence of a new suitor that may seek to outbid rivals to take it over: JKO Play Limited. 

Playtech said it has supplied JKO Play – which is co-owned by former F1 driver and team owner Eddie Jordan and former Scientific Games senior vice president Keith O’Loughlin – with due-diligence information so it could explore a potential offer.

It called discussions with JKO – which is itself in discussions over financing from US investment firm Centerbridge Partners LLC – “at an early stage and ongoing”. 

All bets off

The announcement came less than 24 hours after Australia’s Aristocrat Leisure said its own 680p-per-share offer, which was unanimously recommended by the Playtech board, was “progressing well”. The deal is worth £2.7bn ($3.7bn, €2.38bn).

Playtech was also approached this month by Hong Kong-based Gopher Investments, which already holds a nearly 5% stake in the London-listed firm. Playtech described the discussions “ongoing”.

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Aristocrat to hit back? 

Aristocrat, which today noted the potential rival offers, commented: “Aristocrat and Playtech are continuing to work together to implement the recommended acquisition.

“The regulatory approval process is on track with the timetable previously announced [with approval to be decided at a shareholder meeting on 12 January 2022] and Aristocrat is focused on progressing this quickly. 

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“Aristocrat has committed certain funds to fund the recommended acquisition with financing facilities in place and has completed an equity raise of AUD1.3bn (€831.6m, £700.1m, $944.1m) with strong take-up from Aristocrat shareholders.

In addition, based on feedback from the credit-rating agencies, Aristocrat may be considered for an investment-grade credit rating on closure of the recommended acquisition. Said the company: “Aristocrat urges Playtech shareholders to vote in favour of the recommended acquisition by Aristocrat at these meetings.”

Market moves

Playtech saw its share price soar almost 57% after the Aristocrat deal was initially announced. It was at a new record high of 771.07p by midday Thursday, up by 30%. 

Playtech, which makes software for online-gambling websites and mobile games, was founded by Israeli-Cypriot billionaire Teddy Sagi in 1999.

The company moved from the London Stock Exchange’s (LSE’s) sub-market, the Alternative Investment Market (AIM) to the main market in 2012.

Read more: Aristocrat (ALL) earnings rise, says Playtech deal on track

Markets in this article

PTEC
Playtech
4.21 USD
0.01 +0.240%
PTEC
Playtech
4.21 USD
0.01 +0.240%
PTEC
Playtech
4.21 USD
0.01 +0.240%

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