A mystery bidder in the Playtech deal is thought to be Hong Kong-based with a deal now finally looking likely for the software provider. (Images by Ibrahim Boran at unsplash.com)
After we reported earlier that the Aristocrat / Playtech takeover deal had been put on hold to make way for other suitable investors, the deal finally hit a dead-end following the shareholders rejecting a takeover bid from the Australian gambling machine manufacturer. Playtech tried on numerous occasions to contact the investors in Asia, but they could never make any contact with the investors. This left both Playtech and Aristocrat Leisure without a clear idea of what was happening. This kind of behaviour is certainly unusual, and both companies were left baffled, with a close source saying that they had seen nothing like it.
Since then, there has been another twist in the tale, as news has emerged of a mystery bidder for the software provider.
An advisory group from Hong Kong has approached Playtech in the representation of an unknown investor, who has shown an interest in acquiring the company. The firm representing the investor is TTB Partners, which is an advisory firm founded in Hong Kong by former partners at Goldman Sachs. As of now, Playtech has said that it wasn’t sure if any deal would be concluded, but if there were to be a deal, then it would be a cash transaction.
Playtech stock shot upon hearing the news, as it increased by 10%. TTB Partners had wasted no time contacting Playtech following the deal with Aristocrat collapsing, with the approach coming in under 12 hours later. The deal with Aristocrat Leisure failed after investors rejected the takeover bid. A substantial portion of Playtech shares have been bought by Asian investors, and it is thought that they voted almost unanimously to reject the deal.
Who are the Investors Thought to be?
Although it is uncertain who the investors are yet, we do know that TTB Partners represent Gopher Investments, who bought Finalto, Playtech’s financial division. Gopher Investments Does this mean that the mystery bidder is Gopher Investments? It would certainly be the most obvious guess. But what does that mean for the industry? Would it be a good move?
Personally, I think Aristrocrat would have been the better suiter; however, as the company bailed out on the deal because Playtech operates in unregulated market (something Aristocrat prides its brand on avoiding), the deal collapsed. Gopher was always second choice because it’s not an iGaming or casino related company, but now Playtech may not have a choice but to take this route in order to reach its goal to sell the brand.
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