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Sorry £700 MILLION! Not £700
888 rejected Playtech offer for £700
Certainly a good time to quietly buy more shares imo.
Https://igamingbusiness.com/legal-compliance/legal/caliplay-legal-action-playtech-mexico/
The service fee dispute is weighing on this, surely if the fee is €34m per annum and runs until 2034, to end the contract the payment would have to be approx €340m but that is with no growth and is not discounted...anyway, it's a poor move trying to pull out of a contract on the cheap by Caliente imo
Would need a rise of 80% to get back to the 680p bid that was rejected...as it undervalued the business ..since then it's announced record EBITDA and FY should be over €400m, with debt halved in a year...if as an old post suggested the sum of parts is worth €6b this is now deep value territory...surely a predator will strike with the week £ now presenting a huge bargain..hold tight chaps
So nobody seems to have a clue what this Caliplay “option” actually means
Can anyone explain exactly what this legal action is about?
The press reports are not very clear
Caliplay holds an option to redeem the service fee
What does this even mean?
Does it mean Caliplay can refuse to pay the €34 million?
What does the option allow Caliplay to do?
Does it allow Caliplay to pay zero or to pay less than €34 million?
And why would Playtech have agreed to such an unclear agreement that has now ended up in a Mexican court and is likely to end the JV at a great cost to Playtech?
Unhelpful news at a time when the markets are very nervous. One bad move and investors hit the sell button while the shorters make money at our expense. PTEC need some strong positive news to get anywhere near 600p a share.
Really can't work out how significant this is or how big a customer they are.
If it was serious surely the sp would have tanked.
The SP was low enough without this now
CALIPLAY: LAUNCHES LEGAL PROCEEDINGS AGAINST PLAYTECH IN
MEXICO
* CALIPLAY: CLAIM SEEKS ANNULMENT OF LEGAL RELATIONSHIP
BETWEEN
CALIPLAY, PLAYTECH, AND RELATED PARTIES CONTAINED IN VARIOUS
CONTRACTUAL AGREEMENTS
Interesting and useful posts, thanks all.
The US opening up is the catalyst for huge revenue growth and the company is well positioned. The HardRock deal looks good. Paying down 200m of debt is a positive sign and again the timing couldn't be better. No need to roll the debt into higher interest bonds and no need for short term borrowing is good news. Profit? Well it looks like they have had a clear out, not gone into the detail as yet but I would say we should be looking at revenues, profits and dividends all being re-rated in the next few days by analysts who will up their recommendations on the target price.
Any views? I like the company but it has had a few ups and downs over the last few years.
Oversold with general market conditions .
Bought yesterday 508 !!
If its good enough for Moi its good enough for me. I have followed his example and bought a large chunk to add for myself. No brainer in my opinion.
Just glanced at it and felt it was all quietly positive.
Taking an optimistic view, based on recent takeovers of B2B and B2C providers, Playtech takeover value would be around 6B EUR. The current valuation is 2.25B EUR. So IMHO we do have room for growth.
Some facts:
Neogames 2022 Financials:
Revenue 166M USD
EBITDA 11M USD
Net income -18M USD
Acquired for 1.2B USD by Aristocrats
Playtech 2022 Financials:
Revenue 1.6B EUR
EBITDA 405M EUR
Net income 160M EUR
If we leave out B2C (Snaitech), then PTEC B2B figures for 2022 are:
Revenue: 632M EUR
EBITDA: 160M EUR
Based on revenue, I would say the comparable B2B takeover value of PTEC is ca 4x value of Neogames, which is around 4.4B EUR
Then we can add the value of Snaitech around 2B EUR (comparable takeover of Sisal was 1.9B EUR).
Adding B2B and B2C value gives us PTEC valuation of ca 6B EUR.
From today´s news, we have a new non-exec directory from Hongkong. In the last private buyout attempt, CEO Weizer cooperated with TT Bond group from Hongkong. The share price is rising strongly. Coincidence? No, I think Asians can calculate too.
It stalled for a bit but it has moved up nicely in the last 6 weeks. There is value here and the market is recognising it, particularly in light of the gambling review which seems balanced enough not to scare the horses. There also remains a good chance of acquisition activity in this sector. Overall positive sentiment.
As always little posting activity when shares are rising steadily :)
Record results and yet the share price goes down-shocking market at present.
Final Results look good.
"Record Adjusted EBITDA of €405.6 million, up 28% vs. 2021."
2023 off to a good start according to the RNS.
700 shares via HL as a modest punt on a bid or better times ahead for PTEC
Interesting news, I intend to buy back in today.
Even in recessions people continue to gamble.
Buying shares in PTEC a gamble too!
We are continuing to evaluate business combination opportunities, including alternative opportunities with Caliente, Caliplay and Playtech...
https://www.casino.org/news/tekkorp-digital-needs-more-time-to-find-business-combination/
Well after rejecting a couple of takeovers now, ( bailed at £5.50 I think ?? may have been £7 I’d have to check though ) But with the pound through the floor and worth 35% less than may/ June the yanks can pick this up for a song , I’m starting to build my stake here day by day as this is oversold and a bargain in my eyes , I thought the results was good .