Aristocrat’s £2.7Bn Takeover of Playtech Faces Delay amid JKO Interest

Playtech’s £2.7 billion sale to Australian gambling equipment maker Aristocrat Leisure is hit with delays as Playtech moved to postpone a shareholder vote on the deal.

The UK online gambling software developer and content supplier Playtech stated that it pushed back the shareholder approval of the Aristocrat deal. Initially, a vote was scheduled to take place on January 12, but now it will be held on February 2. Playtech’s board of directors have the deadline in order to give more time for a possible counter bid from JKO Play, a group led by Formula One tycoon Eddie Jordan and gambling industry veteran Keith O’Loughlin. JKO Play emerged as a potential bidder for Playtech in November 2021. The group has been provided with due diligence information and has continued engaging with Playtech since the time they made their initial approach in November. However, the group has so far not tabled any offer.

Playtech said that discussions are progressing, and as a result, JKO Play has requested for time to enable it to develop a potential takeover offer. Initially, JKO Play was given a deadline until January 5 to submit a strong bid for Playtech. Both parties including Aristocrat agreed and approved the deadline. However, the deadline has been pushed back to a date that would be set by a general meeting scheduled to take place on February 2.

However, Playtech stated that despite any postponement, there is no certainty that JKO Play’s approach will result in an offer nor certainty of the terms on which any offer might be made. Playtech further mentioned that its directors continue recommending shareholders vote in favor of the Aristocrat’s offer, stating it would provide
 
 liquidity 
and certainty. Aristocrat responded to the delay by emphasizing that its offer is the only firm bid on the table and provides “attractive value in cash and enhanced regulatory and financial certainty for Playtech shareholders”.

Banks Are Showing Interest to Sponsor Aristocrat’s Bid

In October 2021, Aristocrat agreed to acquire Playtech in a deal worth around £2.70 billion (€3.23 billion /$3.65 billion). The firm tapped UBS and Goldman Sachs for its $5 billion
 
 acquisition 
of Playtech. Goldman Sach was working as adviser on the transaction and it was working with UBS on a $1.3 billion equity raising to fund the deal for Aristocrat. In November, Citibank announced its interest to join other banks to facilitate finances for Aristocrat’s £2.70 billion takeover bid. Bidco, a wholly owned subsidiary of Aristocrat, agreed to purchase Playtech in an all cash deal.

UBS and Goldman Sachs transferred a portion of their commitments to Citigroup. Citi therefore entered into an interim facilities agreement for a bridge loan from UBS, Goldman Sachs Mortgage Company, and Goldman Sachs Lending Partners to meet the cash required for the acquisition. Citi will act as a joint book runner and lead arranger for the Takeout Loan Facility. Although Goldman Sachs and UBS already agreed on the deal, the fate of it would be decided on February 2 by Playtech shareholders with a vote.

Playtech’s £2.7 billion sale to Australian gambling equipment maker Aristocrat Leisure is hit with delays as Playtech moved to postpone a shareholder vote on the deal.

The UK online gambling software developer and content supplier Playtech stated that it pushed back the shareholder approval of the Aristocrat deal. Initially, a vote was scheduled to take place on January 12, but now it will be held on February 2. Playtech’s board of directors have the deadline in order to give more time for a possible counter bid from JKO Play, a group led by Formula One tycoon Eddie Jordan and gambling industry veteran Keith O’Loughlin. JKO Play emerged as a potential bidder for Playtech in November 2021. The group has been provided with due diligence information and has continued engaging with Playtech since the time they made their initial approach in November. However, the group has so far not tabled any offer.

Playtech said that discussions are progressing, and as a result, JKO Play has requested for time to enable it to develop a potential takeover offer. Initially, JKO Play was given a deadline until January 5 to submit a strong bid for Playtech. Both parties including Aristocrat agreed and approved the deadline. However, the deadline has been pushed back to a date that would be set by a general meeting scheduled to take place on February 2.

However, Playtech stated that despite any postponement, there is no certainty that JKO Play’s approach will result in an offer nor certainty of the terms on which any offer might be made. Playtech further mentioned that its directors continue recommending shareholders vote in favor of the Aristocrat’s offer, stating it would provide
 
 liquidity 
and certainty. Aristocrat responded to the delay by emphasizing that its offer is the only firm bid on the table and provides “attractive value in cash and enhanced regulatory and financial certainty for Playtech shareholders”.

Banks Are Showing Interest to Sponsor Aristocrat’s Bid

In October 2021, Aristocrat agreed to acquire Playtech in a deal worth around £2.70 billion (€3.23 billion /$3.65 billion). The firm tapped UBS and Goldman Sachs for its $5 billion
 
 acquisition 
of Playtech. Goldman Sach was working as adviser on the transaction and it was working with UBS on a $1.3 billion equity raising to fund the deal for Aristocrat. In November, Citibank announced its interest to join other banks to facilitate finances for Aristocrat’s £2.70 billion takeover bid. Bidco, a wholly owned subsidiary of Aristocrat, agreed to purchase Playtech in an all cash deal.

UBS and Goldman Sachs transferred a portion of their commitments to Citigroup. Citi therefore entered into an interim facilities agreement for a bridge loan from UBS, Goldman Sachs Mortgage Company, and Goldman Sachs Lending Partners to meet the cash required for the acquisition. Citi will act as a joint book runner and lead arranger for the Takeout Loan Facility. Although Goldman Sachs and UBS already agreed on the deal, the fate of it would be decided on February 2 by Playtech shareholders with a vote.

Source: https://www.financemagnates.com/institutional-forex/aristocrats-27bn-takeover-of-playtech-faces-delay-amid-jko-interest/