After a previous resolution was voted down by shareholders, Playtech will speak with Gopher Investments about selling its Finalto financial service.
Earlier this year, Playtech announced a $210 million sale to a group led by Barinboim Group and backed by Leumi Partners and Menora Mivtachim Insurance.
However, Gopher, a 4.97 percent shareholder in Playtech, made a non-binding conditional bid to buy Finalto for $250 million, plus a $10 million reverse break fee.
After numerous statements from both parties, including Playtech’s statement earlier this month that it “is currently not in a position to change its recommendation” away from the consortium, the gambling tech firm confirmed that “the resolution to approve the disposal of Finalto to the consortium was not passed at the general meeting held earlier today.”
The consortium and Playtech have agreed to immediately terminate the sales and purchase agreement due to the latest development, which saw 68.3 percent opposing the proposal vs 31.7 percent in favour.
As a result, the group’s prohibitions on engaging with Gopher have been lifted, and Playtech has stated that it plans to work with the group to progress a Finalto disposal.
In an update Playtech said: “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.
“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.
“The board’s stated strategy remains to simplify Playtech’s business and to dispose of Finalto for the maximum available proceeds.
“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.”