Playtech Doesn't Expect GBP2.1 Billion Aristocrat Proposal to Succeed -- Update

By Kyle Morris

Playtech PLC said Wednesday that it doesn't expect the recommended 2.1 billion pounds ($2.84 billion) offer from Aristocrat (UK) Holdings Ltd. to achieve the minimum threshold required for approval and that it is evaluating proposals from third parties for the B2B and B2C businesses.

The gambling-technology company said the threshold of 75% of shareholder votes needed to approve the deal isn't expected to be achieved, based on proxy votes. If that is the case on the final vote, the acquisition won't proceed. Results of the final vote will be announced in due course after the shareholder meetings, it said.

Aristocrat said in a separate statement Wednesday that, based on proxy votes, it understands that a majority of votes cast were in favor of Aristocrat's recommended acquisition. However, it said the deal was effectively blocked by a number of investors who haven't engaged meaningfully in the process.

"We are disappointed that our recommended offer to acquire Playtech PLC is expected to lapse. Notwithstanding extensive due diligence on Aristocrat's part, developments since the announcement of our offer have been highly unusual and largely beyond Aristocrat's control," Aristocrat Chief Executive Trevor Croker said.

On Oct. 17, Playtech said it had agreed to the cash takeover offer of 680 pence a share from Aristocrat.

Playtech also said Wednesday that it is considering proposals from third parties for its B2B and B2C businesses. No definitive agreements in regards to these have been reached and negotiations continue. There can be no certainty that any definitive agreement will be reached, it said.

The company said it has continued to see a strong performance across both its core B2B and B2C businesses.

Write to Kyle Morris at [e-mail]

(END) Dow Jones Newswires

February 02, 2022 06:21 ET (11:21 GMT)

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