SBC News Caliplay contests Playtech’s expiry date on JV entitlements

Caliplay contests Playtech’s expiry date on JV entitlements

Caliplay, the Mexican and LatAm joint venture formed by Grupo Caliente and Playtech Plc, has issued a statement related to the ongoing ‘services fee’ dispute between its venture partners. 

Last week, FTSE250 Playtech informed its investors that it would seek a determination by British Courts on whether Caliplay was entitled to redeem an additional services fee related to its working arrangements.

Playtech, which owns a 49% stake in the JV, believes that Caliplay has not fulfilled its duties to redeem services fee options that require determination by an independent investment bank to value JV entitlements.

However, issuing a response, CaliPlay outlined that the option should remain exercisable within 45 days following board approval of the JV’s audited accounts for FY2021 – a period which Playtech believes to have expired.

Caliplay’s statement noted that the dispute had been issued by Playtech Malta as opposed to Playtech Plc.

The board of Playtech stands accused of omitting information related to Caliplay’s services fee entitlements which were not disclosed in the firm’s interim results in September but updated in its December filing. 

Its statement read: “Caliplay made this clear to Playtech on 23 December 2022 when it challenged the accuracy of its 22 September 2022 announcement.”

Playtech accounts detail that JV services fees had accumulated to €34.4m during the six months ended 30 June 2022, in which €22m was generated in 2021 – as the business continues to perform strongly.

“Caliplay remains keen to resolve this matter swiftly, and is committed to the ongoing discussions,” the statement concluded.  

SBC News Caliplay contests Playtech’s expiry date on JV entitlements

 

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