Playtech extends expected Finalto divestment date

Playtech

Playtech

Playtech has issued an update which states that the long mooted sale of the group’s Finalto financial services division to Gopher Investments is not anticipated to close until mid-July.

It was previously announced earlier in the month that the all-cash transaction, which was approved by shareholders during a general meeting held on December 1 2021, has received all regulatory approvals.

The impending completion has been repeatedly lauded as a “significant step” by Playtech, with the gambling group reaffirming a strategy to simplify its operations and focus on its technology-led offering across the B2B and B2C segments. 

Last year, the investment vehicle, a 4.97 per cent shareholder in Playtech, issued an indicative non-binding conditional offer to acquire Finalto after the gambling tech firm had entered into a $210m transaction with a consortium led by Barinboim Group, and backed by Leumi Partners and Menora Mivtachim Insurance.

Amid much back and forth between all parties, Playtech delayed a general meeting, at Gopher’s request, as it sought to gain further information on its proposal, before citing that it had “not yet been able to achieve the necessary clarity”.

However, despite the company’s board backing the consortium’s bid, in mid-August Playtech shareholders voted it down, with 68.3 per cent against the proposal as opposed to 31.7 per cent for. Subsequently, the consortium and Playtech agreed to immediately terminate the sales and purchase agreement.

The much publicised on-off sale of Playtech should also bring fresh developments this month, with TTB Partners recently gaining an extended deadline of 5pm on July 15, 2022, to indicate that it will make a firm offer for the firm or disclose that it does not intend to pursue a takeover.

Author: Ava Harvey