After Gopher Investment made the $250 million offer to acquire Playtech’s lucrative financial division, Finalto, it is now making moves to convince the board and shareholders.
On Tuesday, the Hong Kong fund issued a press release highlighting critical aspects of its offer for Finalto. Additionally, it urged Playtech’s board to adjourn the General Meeting, due to take place on July 15 and discuss the offer. Finance Magnates reached out to Gopher Investment to get more details about their background to get a context of the intentions to acquire Finalto.
The firm, which is a 4.67 percent stakeholder at Playtech, wants to purchase Finalto. Still, the major hurdle in its form is the Playtech management’s agreement for an acquisition deal made by a consortium led by Barinboim Group and backed by Leumi Partners Limited and Menora Mivtachim Insurance Limited, together with key members of the Finalto Business’ management team.
Gopher is an investment vehicle backed by investors with experience in gaming and financials, and it is an affiliate of TT Bond Partners ('TTB') through its Hong Kong regulated entity, TTB Partners Limited. A representative from Gopher told Finance Magnates that the Hong Hong regulated entity is, in fact, advising them on the transaction. The company is an investment and advisory firm based in Hong Kong whose founders and professionals have over 30 years of experience in the financial services industry investing and advising on over $250 billion of transactions in the US, Europe and Asia, the representative said.
TTB Recent Investments
“TTB has significant experience in investing in assets in the technology-driven financial services sector,” Gopher’s representative added. Furthermore, the company told Finance Magnates that recent investments made by the firm include Xen Financial, a next-generation investment platform providing fractionalized access to private markets; KASB, a stock brokerage in Pakistan, and creator of KTrade, Pakistan’s leading retail stock trading app; Finhabits, a US-based leading bilingual money app designed for Latinos’ financial success; Selfin, a digital microlending platform focused on financial inclusion of microenterprises in India; Aspen Digital, an innovative technology-driven platform that empowers asset and wealth managers to offer digital asset products with confidence, driving mass adoption of digital assets and Blockchain technologies; Coherent, a Hong Kong-based insurtech company building digital platforms for insurers; and M7 Real Estate, a UK and EU based real estate asset manager.
When asked if the company had been interested or have investments in cryptocurrency ventures, Gopher’s representative did not comment on the matter nor provided further details on the names of the investors backing Gopher. As of press time, TTB Partners Limited's website had not listed Gopher in its section of 'Advisory', dedicated to disclosing the companies to which they provide advisory services.
Voting against the Consortium’s Offer
The investment company is willing to pay $250 million to Playtech for Finalto and has ‘already allocated and ring-fenced cash funds’ for immediate drawdown. This contrasts with the $185 million the consortium is willing to pay initially, along with $15 million deferred for up to two years and $25 million in contingent.
Despite its premium valuation offer, the fund wants the deal to be closed at materially equivalent terms to the consortium’s offer.
“It believes transaction documentation can be entered into very quickly, and it does not anticipate any need for negotiation of key terms or commercial discussions on the transaction documents,” Gopher said in a statement. About the matter, Finance Magnates asked Gopher their opinion: “Gopher urges shareholders to vote against the Consortium’s offer as this will give the Board the ability to consummate a transaction with Gopher. Gopher considers its Offer to be full and fair, representing appropriate value for the potential of the Finalto business and a clear and material valuation uplift for Playtech shareholders.”
