Playtech has announced that its shareholders voted against the acquisition of Finalto by the Consortium led by led by the Barinboim Group. The online gaming and sports betting software provider held a general meeting on the 18 August where the acquisition was not approved.
The decision was reached with 68.3% of the shareholders voting against the deal and only 31.7% voting in favor.
In May, Playtech and the Consortium signed a binding agreement for the sale of Finalto for $210 million. The agreement restricted Playtech from negotiations with any third party regarding the sale of its financial unit. The Consortium can now terminate the agreement within the next 30 days, the official announcement said. However, it can still re-enter a new agreement, if both companies agree.
Playtech noted that since the agreement with the Consortium will soon be terminated, the company is free to peruse negotiations with Gopher for the sale Finalto.
Gopher Investments made a $250 million offer to acquire Playtech’s financial business. In early July, the Hong Kong-based 4.67% stakeholder of Playtech, urged the shareholders to adjourn their meeting or reject the offer by the Consortium.
With the Consortium’s approval, Playtech made efforts to find out Gopher’s source of funds and understand the company’s structure. The company reaffirmed its recommendation to sell its financial business unit to the Consortium led by the Barinboim Group, after it was not able to obtained sufficient information.
The goal of the company remains to sell its financial division Finalto.
Gopher had this to say about the recent news of the shareholders’ vote:
Gopher Investments , a 4.97% shareholder in Playtech plc, welcomes the result of yesterday’s shareholder vote at Playtech’s General Meeting in which shareholders voted against the Offer for Finalto from Finalto’s management team backed by a consortium led by Barinboim Group .
Gopher looks forward to engaging with the Board regarding its USD 250 million Offer for Finalto and working to complete the acquisition in an expedient and transparent manner.
