The consortium led by Barinboim Group and backed by Leumi Partners Limited and Menora Mivtachim Group and members of the Finalto management team have joined to the recent flood of statements regarding Playtech’s financial unit.
The consortium urged Playtech’s shareholders to vote in favour of their binding agreement for the acquisition of Finalto at the general meeting due to take place on 15 July.
Playtech shareholder Gopher Investments made an offer recently to buy Finalto for $250 million stating that the consortium’s offer does not reflect the real value of the business. Gopher asked the shareholders to adjourn the general meeting or to vote against the offer.
The consortium reminded Playtech’s shareholders of the risks they face if they vote against the agreement they signed. The two companies agreed on 26 May for the sale of Finalto for $210 million after a lengthy and complicated process. The consortium was required to undergo extensive regulatory and KYC requirements before the main regulatory approval checks, all of which took several months.
If the shareholders turn down the consortium’s offer, the lengthy evaluation and regulatory approval process would have to be repeated, putting Finalto in uncertainty for many months.
The consortium also reminded that according to the terms of the Sale and Purchase Agreement, in such a case “Playtech will be required to pay the Consortium a consideration of $8.8 million in the event that a sale transaction is entered into with a third party within the 12 months after termination of the SPA at a value in excess of $200 million.”
The consortium pointed out that little is known about Gopher Investments. An affiliate of the Hong Kong- based TT Bond Partners, the fund is believed to have been registered days ago in the Cayman Islands. It’s interesting to note that Gopher recently acquired almost 5% of Playtech plc’s shares, the slightly below the threshold requiring Gopher to disclose extensive information about itself to regulators.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.