* Proceeds of more than $130 million expected from cash deal
* Transaction expected to close in H1 2022
(Adds detail on Finalto, CEO comment, background)
By Pushkala Aripaka
Sept 29 (Reuters) - Britain's Playtech said on
Wednesday it would sell its financial trading unit to Gopher
Investments, the company's second-biggest shareholder, for $250
million, after investors had rejected a rival deal agreed to
earlier this year.
The cash deal for Finalto has been unanimously backed by the
gambling software maker's board and ends a months-long battle
for Gopher with Playtech and a consortium led by Israeli private
equity firm Barinboim over control of the unit.
"We are very pleased to have successfully reached an
agreement with Gopher ... This transaction delivers on our
strategy to simplify the group to focus on the high-growth B2B
and B2C gambling markets," said Playtech Chief Executive Mor
Weizer.
Playtech said it would either retain proceeds, worth over
$130 million, from the sale and cut its debt if there was
clarity on the current pandemic-hit business environment, or
return capital as feasible, depending on when it receives funds.
Hong Kong-based Gopher, which has a near 5% stake in
Playtech, said the deal is expected to be completed in the first
half of 2022.
London-listed Playtech also said Gopher would pay an $8.8
million break-up fee to the Barinboim consortium, as promised by
the shareholder in July on the condition that Playtech accepted
its $250 million deal over Barinboim's $210 million offer.
Playtech was founded more than two decades ago by Israeli
billionaire Teddy Sagi. While Finalto is not a core asset, it
had been rapidly growing, and market volatility brought on by
the pandemic also made it a lucrative target for buyers.
For the first half of fiscal 2021, the unit posted an
adjusted core loss of $600,000, Playtech said.
Shares of the company, which have gained about 15% in value
this year, ended 3.5% higher on Wednesday at 459.8 pence before
the agreement was disclosed.
(Reporting by Pushkala Aripaka in Bengaluru; editing by
Uttaresh.V and David Gregorio)
Playtech (PTEC)
