Playtech’s shareholders have voted against the proposed sale of Finalto to the Consortium led by Israeli private investment firm Barinboim Group.
At the company’s adjourned General Meeting earlier Wednesday, just 31.7 per cent of shareholders voted in favour of the board-approved resolution, with 68.3 per cent voting against.
Due to the resolution not having been passed, the Consortium has now agreed with Playtech to immediately terminate their share purchase agreement (SPA).
This means that the restrictions on Playtech from engaging with Gopher Investments, a 4.97 per cent shareholder in Playtech that submitted a rival bid of $250m, are no longer in place.
Playtech will now seek to engage with Gopher to progress a disposal of Finalto.
“Although the Consortium has agreed to terminate the SPA, it has indicated to Playtech it intends to maintain the Consortium for the next 30 days, such that it will be in a position to re-enter into the SPA if the parties so agree,” said Playtech. “In the event a new binding agreement is reached with any party a new circular to shareholders will be required, with a General Meeting to approve the disposal.”
Having consulted with its leading shareholders, Playtech understands that by voting against the resolution to dispose of Finalto to the Consortium, shareholders have been willing to accept the risk of the SPA terminating, thereby enabling Playtech to engage with Gopher and to potentially secure better terms for a sale of Finalto.
The board’s stated strategy remains to simplify Playtech’s business and to dispose of Finalto for the maximum available proceeds.
Shares in Playtech plc (LSE:PTEC) were trading 0.87 per cent higher at 393.40 pence per share in London Wednesday following the announcement.