Hong Kong-based investment firm, TTB Partners, has pulled out of a bid for iGaming software company Playtech citing “challenging underlying market conditions.”
As a result of the news, Playtech’s stock price plunged by 19% by the end of trading on Thursday. This puts the UK-listed company back at a trading level it was previously at prior to Aristocrat’s failed takeover bid of October 2021.
In a statement responding to the news of TTB Partners’ decision, Playtech CEO Mor Weizer said:
“We remain confident in our long-term growth prospects and, in particular, our ability to benefit from the structured agreements that are already allowing Playtech to access newly opened gambling markets. Playtech carries strong momentum going into H2 2022 and continues to perform very well across its core B2B and B2C businesses.”
Playtech Chairman Brian Mattingley added that the company wished to put its shareholders in a strong position following Arsitocrat’s failed bid which was rejected by a shareholder vote.
“This process has shone a spotlight on the fundamental premium value of Playtech’s businesses and the board will continue to consider options to maximise value for all shareholders.”
According to Weizer, the company is still in a strong position, following an “excellent” first-half result in 2022. Internal forecasts predict that first-half EBITDA (earnings before interest, taxes, depreciation, and amortisation) will be more than €200 million.
Speaking of the forecasts, Weizer added:
“This performance reflects the quality of our market-leading technology offering and the hard work and commitment of our talented team,”
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.