The board of Playtech Plc has this morning announced that Hong Kong fund TTB Partners has been granted an extension period to submit a deal to acquire the FTSE250 technology group.
TTB Partners’ previous deal submission deadline was due by 17 June, a date that has been extended to Friday 15 July, as Playtech governance informed investors that ‘discussions between the Company and TTB are ongoing, and progress continues to be made’.
The Hong Kong fund that has pursued Playtech since February carries the support of Playtech CEO Mor Weizer, who chose to temporarily suspend his leadership of the company to support TTB Partners’ bid.
Playtech shareholders anticipate an offer that will exceed the £2.7 billion put forward by ASX suitor Aristocrat Leisure in February, which was accepted by Playtech’s board but would be rejected by Playtech’s consortium of Asian investors.
However, TTB Partners fronts its deal against a radically changed economic outlook, as financial markets point to the almost-certain outcome of a global recession, with confidence low on M&A and investment in tech stocks.
Despite in-bound headwinds, Playtech reported an ‘excellent start’ to year trading, generating EBITDA positive results of €100 million, attributed to growth across all gambling B2C and B2B units.
Following its positive Q1 trading update, Playtech governance informed that it held contingencies on all scenarios and options related to the company’s future.
“At present, the Independent Committee believes allowing additional time for discussions to further develop is in the best interests of the Company’s shareholders and other stakeholders,” Playtech’s statement read.
“Accordingly, the Independent Committee requested that the Panel on Takeovers and Mergers (the ‘Panel’) extend the deadline by which TTB must clarify its intentions. The Panel has granted this extension.”