Aristocrat Deal for Playtech Set to Fail

This story was published more than 2 years ago.

Australian gaming company Aristocrat Leisure's attempted purchase of software group Playtech looks like it will fail, as proxy votes on the transaction from the latter look like they'll fall short of the 75% needed to push the deal through.

Aristocrat had submitted an offer for $3.7 billion last year for the software group, subject to shareholder approval. Now, it appears that the deal will fall through, and Aristocrat is working to figure out their next steps.

Commenting on the upcoming failure, Aristocrat CEO Trevor Croker said, "We are disappointed that our recommended offer to acquire Playtech plc is expected to lapse. Notwithstanding extensive due diligence on Aristocrat's part, developments since the announcement of our offer have been highly unusual and largely beyond Aristocrat's control.

"In particular, the emergence of a certain group of shareholders who built a blocking stake while refusing to engage with either ourselves or Playtech materially impacted the prospects for the success of our offer, which had been recommended by the Board of Playtech.

"The long-term interests of our shareholders are the absolute focus of M&A at Aristocrat. We will always take a highly disciplined, strategic approach to our investment choices, consistent with our customer-centric philosophy."

There currently doesn't appear to be a formal offer on the table for Playtech, and the company said that they'd investigate selling off its B2B and B2C businesses in order to maximise value to shareholders.

About the author

Therese Williams // UK Correspondent
Therese Williams
Therese is a fervent fan of slot machines and pub fruities, often trying her luck at some of the top online casinos. She covers news for Casino Listings with a focus on the UK and Europe. Therese studied arts and creative writing at university and has written for newspapers in the UK.
5 replies • Last post

Comments

usbarbadosslim93
Forum AngelForum Angel
barbadosslim93's picture
Location: Michigan
Joined: 28 Jan 2011
Posts: 15192
Thanks given: 852
Thanks received: 2156
3 February 2022 - 5:49pm
#1

LOL. I wonder what's next for these guys.

lvblck
Forum AngelForum Angel
Location: The North
Joined: 6 Apr 2016
Posts: 3896
Thanks given: 344
Thanks received: 1139
5 February 2022 - 11:32am
#2

Right slim? I thought it would happen so it's obviously not a great look for them either. Wonder why caused the deal to not go through.

auCL-Ed
StaffStaff
CL-Ed's picture
Location: Sydney
Joined: 7 Sep 2007
Posts: 10405
Thanks given: 6290
Thanks received: 5352
7 February 2022 - 1:38am
#3

They don't know it yet but I think Aristocrat might be dodging a bullet on this one. There are a lot of skeletons in the Playtech closet.

Always play it safe! Consult our list of rogue casinos and warnings before depositing at a new casino.
Post in our forums to earn CLchips which can be used to buy real prizes in our CLchips shop.

lvblck
Forum AngelForum Angel
Location: The North
Joined: 6 Apr 2016
Posts: 3896
Thanks given: 344
Thanks received: 1139
7 February 2022 - 10:58pm
#4
CL-Ed wrote:

They don't know it yet but I think Aristocrat might be dodging a bullet on this one. There are a lot of skeletons in the Playtech closet.

I want to hear more! I've heard some stuff but nothing concrete. Could you share some of the things you know?

auCL-Ed
StaffStaff
CL-Ed's picture
Location: Sydney
Joined: 7 Sep 2007
Posts: 10405
Thanks given: 6290
Thanks received: 5352
9 February 2022 - 12:07am
#5

Oooh no way, sorry I'm not going there in public!

blck

Always play it safe! Consult our list of rogue casinos and warnings before depositing at a new casino.
Post in our forums to earn CLchips which can be used to buy real prizes in our CLchips shop.