TTB Partners has until 5pm on June 17, 2022, to indicate that it will make a firm offer for Playtech or disclose that it does not intend to pursue a takeover.
This comes after the board of the gambling tech firm was contacted by TTB Partners, on behalf of an investor group to be formed and advised by it, requesting that Playtech consent to release from restrictions under rule 2.8 of the City Code on Mergers and Acquisitions to allow an offer for the company to be considered.
On November 19, 2021, Gopher Investments, an affiliate of TTB, confirmed that it had no intention of making an offer for Playtech and, as a result, the group was bound by the restrictions imposed for a period of six months.
However, without this release consent being granted TTB was bound by the restrictions, which as of May 20, 2022, have expired.
Subsequently, in accordance with rule 2.6 TTB must now signal its intentions by the aforementioned date, which is the 28th day following the end of the restricted period. This deadline can only be extended with the consent of the Panel on Takeovers and Mergers.
“Discussions between the company and TTB are ongoing and progress continues to be made,” Playtech noted in an update regarding the offer.
“There continues to be no certainty that an offer will be made, or the terms on which any offer may be made.
“The Independent Committee is conscious that TTB has been considering a possible offer for Playtech for 15 weeks.
“The Independent Committee continues to explore options for maximising shareholder value, and reiterates the strong performance of the group, as announced to the market on May 5, 2022, which has continued through the month of April and into the month of May.”
These prior acquisitive overtures by Gopher Investments, a 4.97 per cent shareholder that agreed a deal to purchase Playtech’s Finalto financial services division, met one of the key conditions of Aristocrat’s attempted buyout of the firm.
However, Gopher formally dropped out of the race in November, one day after JKO Play, a 0.51 per cent shareholder in Playtech, entered the fray, before it too withdrew from the takeover battle earlier in the year.
In February, it was confirmed that Aristocrat’s offer had been rejected after the total votes cast in favour of the resolution at a general meeting was 54.68 per cent, which fell some way below the minimum threshold of 75 per cent that was needed to approve the transaction.
Furthermore, it is added that TTB has previously indicated to the board that it expects any offer, if made, will be at a higher value than the recommended cash acquisition by Aristocrat Leisure of 680p per share, announced on October 17, 2021.