Playtech (PTEC) stock surges on bid war
09:49, 15 December 2021
UK software company Playtech saw its stock lift more than 3% on Tuesday morning on news of a $2.5bn special purpose acquisition company (SPAC) takeover offer for Mexican online gambling operator Caliente Interactive, in which Playtech holds a majority stake.
Stock in London-listed Playtech (PTEC), which owns 49% of Caliente via a joint venture, rose 3.5% to £7.57.
Eyes down for bidding war
Playtech, which is among the world’s biggest online gaming platforms, has been the subject of bid interest itself, with a bidding war now possibly on the cards. The comnpany had already confirmed a preliminary approach from JKO Play, a consortium involving ex-Formula One team owner Eddie Jordan in November.
In October, the Playtech board received a £2.7bn offer from Australian slot machine business Aristocrat – which may be reconsidered.
A Sky news report on Tuesday suggested that under a deal with Tekkorp Digital – a US-listed special purpose acquisitor company – $250m would be invested from broadcaster Univision as well as supported by further institutional money.
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Industry consolidation accelerating
Sky News also reported that JKO Play was close to agreeing an offer of around 750p a share that the Playtech board could support.
A wave of consolidation is being spurred by tighter gambling regulation as well as more US opportunities following increased legalised state betting and a consquent surge in popularity.