Finalto Battle Heats Up as Gopher Responds to Playtech Recommendation

Gopher Investments, a 4.97% shareholder in Playtech plc, responded to the latest recommendation released by Playtech today regarding the sale of Finalto. Gopher mentioned that the supplementary circular published by the Israel-based company does not contain a ‘full and fair’ representation of the interaction between the two companies.

Gopher mentioned that the company is ‘highly disappointed' with the Board of Playtech’s decision not to change its recommendation in relation to the offer from Finalto’s management team backed by a consortium and led by Barinboim Group.

In the latest announcement, Gopher issued some clarifications regarding the recent events. The company highlighted that it responded promptly to initial information requested by the Board regarding its financing matters and regulatory approvals.

According to the statement from Gopher, the confidentiality process between the two parties was put on pause on 26 July after Playtech advised Gopher that it would shortly be issuing a supplementary circular.

“Since 26 July 2021, Gopher has received: (i) no further request for information from Playtech or its advisers, despite multiple interactions; (ii) no indication that the additional information requested was required for a change of recommendation nor that the Board would not be changing its recommendation; and (iii) no suggestion that Gopher had provided insufficient information for the Board to form a view on its proposal,” Gopher highlighted in the latest announcement.

Gopher’s Proposal

The Asian firm reminded shareholders about the potential benefits of its Finalto offer and mentioned that the $250 million offer represents a 47% premium to the base proposal offered by the Consortium. The company added that it will deliver certainty of full proceeds on completion, with no deferred or contingent component.

“Additionally, Gopher understands that Playtech may have received interest in Finalto from other potential acquiring parties since the date of the adjournment. As the second-largest shareholder in Playtech, with approximately USD 100 million of capital invested, Gopher’s interests are aligned with those of its fellow shareholders in looking to maximize value for Finalto and would expect the Board to properly consider all credible offers. Gopher strongly believes that Finalto’s attractive growth prospects are not fairly reflected in the value of the Consortium’s offer that has been recommended by the Board,” Gopher mentioned.

“For all of these reasons, Gopher encourages Playtech shareholders to VOTE AGAINST the Consortium’s offer, in line with the current recommendations of proxy advisors Glass Lewis, ISS and PIRC,” the company added.