Playtech Shares Slide After JKO Play Withdraws From Possible Offer -- Update

By Kyle Morris

Shares in Playtech PLC dropped Friday after Eddie Jordan's JKO Play Ltd. said it no longer intends to make an offer for the gambling-technology company, ending a potential bidding war.

Shares in Playtech at 1136 GMT were down 117.50 pence, or 16%, at 613.0 pence.

Responding to the news, Playtech said its board continues to unanimously recommend the 2.1 billion-pound ($2.86 billion) takeover from Australian-listed gaming content and technology company Aristocrat Leisure Ltd. and encouraged shareholders to vote in favor of the deal at the meetings scheduled for Feb. 2.

Playtech said that a number of material investors haven't made their views on the offer clear and that it continues to seek engagement with all shareholders.

"The board is approaching the court and general meetings without a clear understanding of whether these shareholders are supportive of the Aristocrat offer," it said.

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

Aristocrat on Friday noted JKO Play's decision not to proceed with an offer and confirmed that the regulatory-approvals process remains well on track and that it is committed to completing the deal as quickly as possible.

"Aristocrat urges all Playtech shareholders to vote in favor of the recommended acquisition at the relevant shareholder meetings," it said.

It subsequently received a further takeover approach from JKO Play on Nov. 18.

JKO is now unable to make another offer for Playtech in the next six months under U.K. Takeover Panel rules.

Write to Kyle Morris at [e-mail]

(END) Dow Jones Newswires

January 21, 2022 07:01 ET (12:01 GMT)

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