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A small article on Playtech, given a long recommendation, 800p, DYOR:
https://www.smartkarma.com/home/daily-briefs/tmt-socar-inc-playtech-plc-sensetime-group-and-more/
So another delay - however there is clearly now a deal to be made, else they would have walked today. It would seem logical that they are waiting for something in order to make the bid..as it would not take this long to negotiate a price normally. My guess is they are waiting for the Caliente SPAC deal to go through, waiting to get confirm what % of shares can remain listed or waiting to hear if they will retain licenses to operate in US under new control- I think they are waiting on something that is out of their hands, but that a deal is on the table. Finalto sale could have been one hurdle that is now cleared. I feel the month extension can only be viewed as the required time to get the bid finalised given whatever issue remains.
Any shareholders living close to Holborn might consider attending the AGM on 30/6 and asking some pointed questions about the glacial progress of these negotiations!
Best of luck to all holders tomorrow, remember the long term value here is far above current SP, so any dips could be an opportunity.
Gopher and TTB Partners being affiliated, it would be unsurprising if the latter had to be satisfied that the former had Finalto absolutely in the bag before agreeing terms for the rest of PTEC. We’ll know soon enough….
As per this morning's RNS, sale of Finalto to Gopher has regulatory approval. Clearing the way for the TTB bid perhaps? We shall see. But the proceeds of £205m will reduce net debt significantly, so good news.
If it were to tank next week, the temptation to average down would be irresistible!! GLA.
There is very low volume on reported trades, so someone is either filling a large order, transacting off book or playing around with the bid/ask to try and generate some selling. I have now decided that I will hold this regardless of whether there is an offer from TTB or not, as comparing the valuation here to other players like Entain and Flutter, in my opinion, it is now at a deep discount to FV - I expect if no bid comes in it could tank considerably, but there are too many interested parties here for there not to be more bids. I will hold my nerve and see where it take me.
Morning Thunder. At 9.27 this morning Odey Asset Management posted an RNS that yesterday they purchased c.240,000 shares @ £5.23. They bought a similar amount on Friday, adding to their already significant holding. Perhaps they’ve made similar calculations to yourself (well done on those) but why are the shares being marked down when there is more buying than selling?
Good morning
As we await the bid deadline on Friday for the TTB approach, there has been more recent M&A activity in the sector. Here are my opinions on the implications for Playtech:
Recently, MGM announced that it was buying LeoVegas for $607m, equating to 12x EBITDA.
https://wagers.com/news/mgms-leovegas-play-big-deal-with-bigger-implications/
Today, Entain have announced that they are buying BetCity - 'acquisition of BetCity, one of the Netherlands' leading online sports betting ... based on 10x BetCity's EBITDA for the financial year 2023'
So clearly there continues to be very strong demand for betting companies at the moment in the M&A market despite the headwinds in the economy. In fact betting companies are sin stocks, but have very defensive qualities. Playtech announced EBITDA for Q1 of over €100m or circa £84.5m:
https://igamingbusiness.com/playtech-hails-excellent-q1/
If the run rate of Q1 is sustained that would put Playtech on course for adjusted EBITDA of circa £338m for FY22. Now, given there is net debt in the business of circa €600m or £515m (as per 31 Dec 2021 results), an adjustment for the enterprise value should be made in any similar valuation of Playtech. However, we already know that there is an intention to pay down the debt with the Finalto proceeds - which are $250m or £205m, so post completion net debt could stand around £300m.
Taking the average multiple from the recent transactions in the market, 11x EBITDA, playtech FV is £338m x11 less £300m net debt say which equals £3,718 -£300m = £3.4b. This equates to a premium of 112.5% over current price.
At current share price of 519p the market cap is £1.6b, therefore to give the FV of £3.4b I equate this to a share price of 1,103p per share.
So now we really need to see a bid over 800p on Friday IMO or TTB are significantly undervaluing the company.
Good luck all, and DYOR.
Hey, Thunder : don’t know about you, but in 40 years of trading I’ve never experienced anything like this. Any government would be delighted to enjoy such silence smothering its members’ private discussions and negotiations! Good luck to all who have kept their nerve.
Hi Marinella. I think also a lot to do with low volume, market makers certainly play around with the bid/ask on this a lot - although I did see a £40k sell this morning, so perhaps that was the meaning of the dip - regardless as you say, not long to weight to find out if TTB are bidding or not. Interestingly if you go on their website, they have a dedicated tab for Playtech bid and even a website set up for it - I do question why on earth they would go to that trouble and also risk looking rather amateur by not bidding after so much noise..which makes me think a bid will come, but with a twist I am as yet unsure of.
No suggestion of any significant selling by institutional investors or potential bidders: a case of the market hating uncertainty. Over soon…..
Moving towards the next chapter rapidly here, 6 trading days until the deadline lapses. I look at it this way, either they offer 750p or we make more by a sum of parts break up and realise the upside ourselves. Its a no brainer as I said if you look at the EV/Ebitda here vs Entain and Flutter, the other big US exposed players...GL all
your question will be answered by 5 pm on 17 june . I'm convinced an offer of £7.50 will be tabled before then followed by others
Is something about to happen, I sure do hope so...recent share price movements looks promising
https://www.baltictimes.com/estonia_s_online_gambling_success_story___the_history_of_playtech/
Not related but fascinating read
love the way they snook in the april, may update to reaffirm the positive trading, also confirming statement made without knowledge of ttb. put up or shut up . chairman must have had a pop at ceo . i think other parties are waiting to pounce, this company is evolving into a different animal to the one that was when aristocrat came aknocking. if ttb don't win this then the ceo is out of ajob along with his oppo. the finance director .
The Restricted Period ends next Friday, just possibly heralding an update!
The valuation here is starting to look way too low in my opinion. Entain and Flutter both surging today on strong US growth news - they trade off circa 11x and 15x EBITDA by my estimates. If Playtech EBITDA of £100m was maintained over the rest of 2022, that would give £400m, which means we are trading off 3.75x, even if EBITDA comes in the same as last year we are trading way too low in comparison!
https://www.legalsportsreport.com/68955/illinois-sports-betting-license-caliente/#:~:text=Illinois%C2%A0apparently%20is,the%20decision%20today.%E2%80%9D
down 15 to up 10 in 2 hrs. something afoot ?
thanks nr98. good sign for sure.
https://www.investegate.co.uk/article.aspx?id=20220511152200Z6301
about 1m shares at 494p