Last checked at 
(Alliance News) - Playtech PLC said on Wednesday that its acquisition by Aristocrat Leisure Ltd was rejected at a court and general meeting as the proposal was unable to secure the required approval needed.
The total votes in favour of the resolutions were 56.13% at the court meeting and 54.68% at the general meeting, which were below the minimum threshold of 75% in favour.
This means the acquisition of Playtech by Aristocrate Leisure has been terminated and the scheme has lapsed.
Earlier Wednesday, Playtech noted that the shareholder vote was likely to reject the agreement.
The gambling software firm said shareholders were not likely to back the takeover by Sydney-listed Aristocrat, as proxy votes held to date had not reached the minimum 75% approval threshold. Should the vote at the general meeting, being held Wednesday morning, confirm this, the acquisition of Playtech by Aristocrat will not proceed.
This follows a statement issued by Playtech a week ago reaffirming its support for the Aristocrat takeover, in the face of a media report that a group of Asia-based shareholders planned to block the deal.
Aristocrat responded on Wednesday morning to the news that its deal was unlikely to pass, saying it had "taken every possible step to engage with this group of shareholders" who were blocking the acquisition. It noted the majority of the shareholders in question had registered after the announcement of the prospective deal.
Aristocrat Chief Executive Officer Trevor Croker said: "We are disappointed that our recommended offer to acquire Playtech PLC is expected to lapse. Notwithstanding extensive due diligence on Aristocrat's part, developments since the announcement of our offer have been highly unusual and largely beyond Aristocrat's control.
"In particular, the emergence of a certain group of shareholders who built a blocking stake while refusing to engage with either ourselves or Playtech materially impacted the prospects for the success of our offer, which had been recommended by the board of Playtech PLC."
Playtech has said in light of the expected shareholder vote, it is "evaluating attractive M&A proposals it has received from third parties in respect of [its] B2B and B2C businesses.".
"In the event that the Aristocrat offer does not proceed, the board is determined to pursue options to maximise value for all shareholders and accelerate validation of that value," said Playtech Chair Brian Mattingley.
In January, JKO Play confirmed it did not intend to make Playtech an offer, leaving Aristocrat the sole contender to take over the gambling company.
Meanwhile, Playtech also said early Wednesday that trading since November in its business-to-consumer and business-to-business businesses has been strong. It expects to complete the sale of its financial trading division Finalto to Gopher Investments in the second quarter of the year.
Playtech shares were up 0.6% to 580.50 pence each in London on Wednesday afternoon.
Aristocrat shares closed up 0.9% to AUD41.29 in Sydney on Wednesday morning.
By Elizabeth Winter, elizabethwinter@alliancenews.com; and Greg Roxburgh, gregroxburgh@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
