Finalto (formerly known as TradeTech), the financial division of Playtech, received another lucrative $250 million acquisition offer from Gopher Investments, which is a 4.97 percent shareholder in Playtech and an affiliate of TT Bond Partners (TTB).
Announced on Friday, Gopher agreed to pay the entire amount in cash with no deferred or contingent component. It has made the inductive offer to the Board of Directors of Playtech.
Better than the Old Offer?
Finance Magnates earlier reported that Playtech entered into an agreement to sell Finalto to a consortium led by Barinboim Group and backed by Leumi Partners Limited and Menora Mivtachim Insurance Limited, together with key members of the Finalto Business’ management team.
That deal was agreed at $210 million, which includes a $185 million initial payment and $15 million deferred for up to two years, along with a $25 million contingent. Being an all-cash upfront deal, the latest offer for Finalto looks more attractive.
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The announcement further detailed that Gopher’s proposed valuation of Finalto represents a 47 percent premium to the base proposal to the consortium and a 35 percent premium to the guaranteed consideration of that offer. Moreover, Gopher highlighted that it is offering a 19 percent premium to the maximum consideration payable by the consortium.
According to Gopher, the offer made by the consortium did not fairly reflect the value of Finalto’s attractive growth prospects. However, it needs the terms of the deal to be on equivalent conditions offered to the consortium.
“Gopher has carried out a detailed review of Finalto from a range of publicly available resources,” the announcement stated. Gopher now needs around 3 weeks for further limited due diligence before entering into a fully binding offer for Finalto.
“TTB believes the Finalto business could significantly improve its stability of performance and increase its profitability. TTB has worked with its portfolio investments on developing strategic growth plans, and believes that under its ownership Finalto would have the potential for significant additional expansion,” it added.