Aristocrat and Playtech $3.7 billion merger postponed amid growing interest in deal from JKO Play
According to the press service of the Australian giant in the production of slot machines and software for gambling entertainment Aristocrat, the merger of the brand with one of the leaders of the world gambling market Playtech will once again be postponed indefinitely. The main reason for this is the continued interest in the deal by JKO Play.
On October 18 last year, all profile news resources reported that Aristocrat and Playtech had reached a final agreement on the merger. The total cost of implementing the plan, which was derived from the developer’s current asset valuation, was $3.7 billion. In addition, shareholder meeting dates for the recommended acquisition were set from January 12 to February 2, 2022.
However, investment firm JKO Play, which had previously appeared in the application process for a full stake in Playtech, has again indicated its substantive interest in the initiative. Such a move, according to the British Takeover Code, is the reason for the suspension of the previously launched merger process between Aristocrat and Playtech.
The U.K. gambling regulator has decided to postpone JKO Play’s latest activity date to January 26. By that time, the company must either publish a formal offer to acquire Playtech’s facilities or withdraw completely from bidding and give up its claims.
So far, the recommended bid from Aristocrat is the only firm merger request Playtech has received.
Aristocrat bosses suggest that other potential bidders have already taken advantage of a significant amount of time to make a counteroffer. In their view, further postponement of relevant shareholder meetings only prolongs the period of uncertainty for Playtech.
In addition, the company noted that the regulatory approval process is ongoing, adding that it is committed to closing the deal as quickly as possible.
Recall that Playtech has launched two cutting-edge live casino studios in Michigan and New Jersey.