TTB Partners has revealed that it will not be taking over sports betting and gaming tech supplier Playtech.
The Hong Kong-based entity pointed towards ‘challenging underlying market conditions’ for failing to complete a long-mooted takeover of the firm.
However, TTB retains the right to set aside restrictions in Rule 2.8 of the Takeover Code with the agreement of Playtech, if a third party announces a firm intention to make an offer, under a waiver proposal and if there’s a material change of circumstances.
Last month, Playtech announced an extended deadline for TTB to clarify its final intentions, allowing additional time for ‘discussions to further develop is in the best interests of the company’s shareholders and other stakeholders’.
“This process has shone a spotlight on the fundamental premium value of Playtech’s businesses and the board will continue to consider options to maximize value for all shareholders,” commented Brian Mattingley, Chair of Playtech.
This comes after Playtech’s board 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 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, expired.
Gopher Investments, a 4.97% shareholder that this week finalized the purchase of Playtech’s Finalto financial services division, met one of the key conditions of Aristocrat’s attempted buyout of the firm. However, the investment vehicle formally dropped out of the race in November.
In February of this year, Aristocrat’s offer was rejected after the total votes cast in favor of the resolution at a general meeting was 54.7%, below the minimum threshold of 75% that was needed to approve the transaction.