£2.7 Billion Sale of Playtech to Aristocrat Soon to be Voted For

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

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Last updated: January 19, 2022

The £2.7 billion sales of Playtech to Aristocrat, a huge Australian-based slot machine company, is in uncertainty after the UK-based company asked to postpone shareholder voting on the proposal.

The Aristocrat deal is being pushed back by Playtech, a company that makes computer programs for gambling organizations. The vote was supposed to occur on the 12th of January, but it will now happen on the 2nd of February.

The deadline has been extended to allow for a prospective counter-proposal from a consortium hosted by Formula One millionaire Eddie Jordan. Jordan and gaming industry veteran Keith O’Loughlin started chasing Playtech in November and have requested an extra deadline to create a prospective deal. The pair now have until 26th of January to create a definite offer or simply leave it as it is. Playtech stated that discussions were “progressing.”

The information will cause speculation that an offer gazumping Aristocrat is coming. The delay, according to Ivor Jones, an analyst at Peel Hunt, indicates that the possible proposal by JKO, the group established by Jordan and O’Loughlin, has a huge potential.

More about Aristocrat’s Offer

Aristocrat made a 680p per share proposal for Playtech in October, but the stock has traded much above that level since then as investors hope that a bidding war will drive the price up. Playtech’s stock slipped 3.5p to 728p this morning.

Aristocrat’s bid continues to be the only good proposal and “provides good monetary value as well as increased legal and financial security for Playtech investors, according to the company.

According to Aristocrat, JKO has already had a significant time to submit an alternative bid for Playtech.

“The decision to further delay the relevant shareholder meetings extends the period of uncertainty for all Playtech stakeholders,” – stated Aristocrat.

Business discussions in the American-based company in which Playtech has a stake have complicated any prospective counter bid. Caliente Interactive, a company that is apparently in conversations to IPO on the Nasdaq in a SPAC deal, is functionally owned by Playtech. It’s difficult to figure out how to create an agreement that best represents this matter.

While not having a good counter-proposal, Playtech’s board of directors unanimously recommended that Playtech investors vote for Aristocrat’s proposal.

If a larger offer comes in, it’s unclear whether Aristocrat will try to match it. Despite the fact that shares have remained consistently above the offer price, the corporation has failed to sweeten its bid.

Aristocrat’s history dates back to the 1950s when it began as a slot machine manufacturer. The corporation still creates them, with many going to Las Vegas, however, through a series of transactions over the last few years, it has converted itself into an internet gaming enterprise.

More about Eddie Jordan

Eddie Jordan or also known as just EJ is a businessman, television figure, and former owner of a motorsport team born in Dublin. Some of his greatest achievements are his victory in the Irish Kart Championship in 1971 and then three years later he continued with Formula Ford. After leaving Formula 1, he continued his career as a prominent businessman and investor.