Finalto takeover battle heats up as latecomer Gopher offers to pay break clauses
London-listed Playtech’s shareholders will have more time to examine a controversial takeover offer for its trading platform Finalto after it delayed a planned General Meeting by a fortnight.
Playtech’s board had recommended the sale of the platform to an Israeli consortium for around £150m, but a larger offer from shareholder Gopher Investments emerged last week.
However Playtech had already signed an agreement with the consortium forbidding any further discussions between the gaming firm and third parties.
Gopher has offered a $250m (£180m) for the platform, and today sweetened the deal by offering to pay Playtech an additional $10m (£7.2m) to cover a break clauses it would have to trigger if it reneged on the planned deal with the consortium.
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Playtech had been shopping Finalto to the market as it looks to focus on its core activities, with Gopher’s improved offer coming somewhat out of the blue.
But that late offer saw investor body PIRC reverse its previous recommendation that Playtech investors approve the deal with the consortium, instead recommending shareholders oppose the deal “in order to facilitate the increased offer.”
In an increasingly bitter takeover battle, the consortium this afternoon issued a statement saying that it had “given Playtech a limited release to ascertain the crucial KYC and related information it requires.”
The consortium also said “Gopher has failed to properly answer even basic questions” on the source of its funds and its ultimate controlling parties.
Gopher is an investment vehicle affiliated to TT Bond Partners, based in Hong Kong.
The consortium’s statement this afternoon also icily noted “should it be revealed by Gopher that any of its ultimate controlling parties are indeed linked to China, any acquisition is likely to raise material regulatory concerns and will be subject to even closer scrutiny.”
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