Playtech has decided to extend TTB Partners’ period to submit a proposal for acquiring the former company. This was announced this morning by the gaming supplier’s board of directors.
Playtech and TTB Partners to Continue Negotiations
TTB Partners had to submit a proposal by June 17, which it failed to do. As per Playtech’s board’s decision, the Hong Kong-based fund will have an additional month to put forward a deal. As per the decision, TTB Partners now has to submit a proposal before July 15.
The delay was caused by the ongoing negotiations between the two companies. TTB Partners first announced its intentions to acquire the supplier in February and has pursued this goal since. According to Playtech’s board, the negotiations are yielding results but are taking longer than expected.
“The Independent Committee requested that the Panel on Takeovers and Mergers extend the deadline by which TTB must clarify its intentions. The Panel has granted this extension.”
Playtech shareholders expect TTB Partners’ offer to exceed Aristocrat Leisure’s earlier bid. In February, the latter proposed to acquire Playtech for $2.7 billion. At first, the supplier was favorable to the offer, leading to approval from its board. However, its shareholders were not as happy with the proposal and rejected it.
The Future of the Deal Is Still Uncertain
If TTB Partners hopes to close a deal, it would have to offer an agreement that Playtech investors are happy with. The fund may have an easier time in striking a deal than Aristocrat though. On one hand, Mor Weizer, Playtech’s chief executive officer, strongly supports the takeover bid. On the other, the changes in the global economic landscape may convince Playtech to agree to whatever the fund offers.
The latter is still uncertain, though, as Playtech’s shares are still going very strong, despite a global drop in confidence in tech stocks. Additionally, the company’s financial results for the first quarter of the year show promise as revenues continue to soar.
According to an earlier Playtech statement, the company wants to consider all kinds of scenarios and be able to adapt accordingly. Because of that, Playtech is willing to continue its talks with TTB Partners, instead of rushing its decision. The company’s board believes that it is best to continue discussing the deal for an additional month and that allowing the negotiations to mature is in everybody’s interest.
Meanwhile, Playtech continues to conduct its business as usual. A few days ago the company helped NorthStar Bets, a casino operator, launch its offerings in Ontario’s regulated market.