Playtech Releases Recommendation for Finalto Sale

Playtech, a leading supplier of online gaming and sports betting software, published the supplementary circular to shareholders today and notified that the adjourned General Meeting to approve the Disposal of Finalto will be resumed at 10 am on 18 August 2021.

In the latest announcement, Playtech mentioned that the recently received proposal from Gopher Investments is uncertain in terms of deliverability. The company added that one of the primary reasons behind the uncertainty of Gopher’s proposal is that it remained subject to a number of conditions.

In May 2021, Playtech agreed to sell Finalto to a consortium led by Barinboim Group in a deal worth $210 million. Finalto, the financial division of Playtech, saw consistent growth in the last few years. Finalto’s key management team includes Group CEO Ron Hoffman and Group COO Liron Greenbaum.

“The Board’s stated strategy remains to simplify Playtech’s business and to dispose of Finalto for the maximum available proceeds. The proposal received from Gopher Investments (‘Gopher’) is uncertain in terms of its deliverability, principally because it is not binding in nature and remains subject to a number of conditions. Under the restrictions in the sale and purchase agreement entered into with the Consortium on 26 May 2021 (which include the Company not encouraging, soliciting, or responding to an approach from another party to purchase Finalto), the Company is not entitled to directly engage with Gopher,” Playtech mentioned.

New Developments

Playtech highlighted that the consortium has allowed the company to compile a list of clarificatory questions for Gopher including their funding structure, source of funds, ultimate ownership and Gopher’s ability to obtain the required regulatory clearances.

“Gopher provided some initial responses to those questions and, again with the Consortium’s consent, Playtech sent some further questions to request additional clarity. Over the last three weeks, Playtech and Gopher have had a dialogue on the basis upon which Gopher would be prepared to provide this additional information, but the Company has not received responses to these additional questions. This means Playtech has not yet been able to achieve the necessary clarity on Gopher’s ultimate ownership and funding structure, source of funds, or ability to obtain the required regulatory clearances,” Playtech added.

In March 2021, Playtech announced the appointment of Brian Mattingley as Non-Executive Chairman.