JKO Play, the group formed by former Formula 1 team owner Eddie Jordan and former Scientific Games executive Keith O’Loughlin, announced it is dropping its plan to submit a rival bid to Aristocrat Leisure Limited’s US$2.9 billion takeover offer for online gaming giant Playtech PLC.
The U.K. Takeover Panel had extended the deadline for JKO to submit its bid from January 12 to February 2 and two weeks ago, it was reported that the group had won the financial backing of PartyGaming co-founder Vikrant Bhargava in the potential bid. Playtech postponed a shareholder vote on the Aristocrat bid until February 2.
JKO Play did not give a reason for pulling out of the potential bidding war, issuing a brief statement announcing its withdrawal. “The Eddie Jordan Family office and Keith O’Loughlin announce that JKO Play Limited, a 0.51% shareholder in Playtech, does not intend to make an offer for Playtech,” the statement said.
The development clears the way for Aristocrat, the only remaining bidder in a contest that at one point counted three suitors, to proceed in its takeover bid for Playtech, which previously announced that its board of directors had voted unanimously in favor of the Aristocrat acquisition.
The shareholder vote will take place on February 2, but according to Playtech officials, approval of the deal is not a lock.
“A number of material investors have not to date engaged meaningfully about their views on the Aristocrat offer, including certain investors that have disclosed or taken material positions in the company following the announcement of the Aristocrat offer,” Playtech said in a statement published by iGaming Business.
“The absence of customary levels of engagement means that the board is approaching the court and general meetings without a clear understanding of whether these shareholders are supportive of the Aristocrat offer.”
Aristocrat, meanwhile, issued a statement aimed at Playtech shareholders. “Aristocrat further urges the Playtech board to take all available steps to deliver a transaction with Aristocrat that facilitates Playtech shareholders receiving full and fair value for their investment,” the statement said.
Playtech shares fell 4 percent after the news of JKO Play’s pullout and a Sky News report that day that Playtech was exploring a breakup if the Aristocrat deal doesn’t go through. Playtech reiterated its support of the Aristocrat deal, but did not address the Sky News report.
