Playtech Postpones Shareholders' Voting on Finalto Deal

Playtech announced on Friday that it has adjourned its General Meeting, to be held on July 15, for two weeks to allow both the Board and the shareholders to ‘further consider recent developments’ concerning the Finalto Acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term deal.

“It is currently intended that there will be a two-week adjournment such that the Company will hold an adjourned general meeting to consider the Consortium Offer at 10 a.m. on 29 July 2021,” the company noted.

The decision to postpone the general meeting was made after Playtech ‘consulted with a large proportion of its major shareholders’.

Binding Agreement Already in Place

The London-listed company was going to conduct shareholder voting for the final approval of the $210 million deal offered by the Barinboim Group-led consortium. However, the process faced a hurdle as Hong Kong-based fund Gopher Investments made a $250 million offer for Finalto.

Playtech already signed a binding agreement with the consortium in May for the Finalto deal and can no longer initiate talks with a third party. Gopher came out with its offer on July 2 and is now insisting Playtech management consider its deal and urging shareholders to vote against the consortium's bid.

“Both Playtech and the Consortium are bound by the restrictions agreed as part of the SPA, which includes not engaging in negotiations with any third party regarding a potential transaction involving the sale of Finalto, as is customary for transactions of this nature,” Playtech clarified.

“For the avoidance of doubt, the adjournment of the General Meeting does not change these restrictions.”

In a press release, the consortium pointed out that even if the shareholders vote against its offer, Playtech has to pay $8.8 million if they want to sell Finalto for above $200 million to a third party within a year.

Though Gopher made the offer for Finalto, not much is known about its backers and source of funds, Finance Magnates reported earlier. Further, Gopher is now offering a $10 million break fee to Playtech under certain terms.

However, amid the uncertainties around Gopher, UK investment banking specialist, Peel Hunt recommended Playtech shareholders to vote in favor of the consortium's offer.