Top investor Gopher clashes with UK's Playtech over bid for trading unit
By Pushkala Aripaka and Muvija M
July 6 (Reuters) - Playtech shareholder Gopher Investments on Tuesday made a fresh case for its offer to buy the gambling software maker's financial trading division, weeks after Playtech agreed to sell the business to another group.
Hong Kong-based Gopher, Playtech's second-biggest investor with a nearly 5% stake, said the London-listed firm's rejection of its $250 million proposal on Friday did not "fairly reflect" the merits of its offer.
Playtech in May agreed to sell the financial trading unit, Finalto, to a consortium led by Israeli private-equity group Barinboim for up to $210 million.
While Finalto is not a core asset for Playtech, founded more than two decades ago by Israeli billionaire Teddy Sagi, it has been rapidly growing, and market volatility brought on by the pandemic has also made it a lucrative target for buyers.
Defending its proposal, Gopher said on Tuesday it had already earmarked funds for a deal, and was confident of getting all the necessary approvals. It also asked shareholders to vote against the Barinboim-led proposal at a July 15 meeting.
"Gopher urges the Board to adjourn the General Meeting ... and engage in discussions with Gopher to proceed towards a recommended transaction that delivers materially better value," it said.
Playtech declined to comment on Tuesday but said last week it was bound by the Barinboim-led deal, and the timing of Gopher's proposal made it "very difficult" to assess the offer. Barinboim was not immediately available for comment.
U.S. activist investor SpringOwl Asset Management, which has for years said Playtech should sell Finalto, also backed Gopher's offer in an emailed statement to Reuters on Tuesday.
"We support Brian Mattingley, the new (Playtech) Chairman, and urge him to take this offer very seriously," SpringOwl CEO Jason Ader said.
Playtech's biggest shareholder Setanta Asset Management, and other major investors Schroders and Aberdeen Standard Investments did not immediately respond to Reuters' requests for comment.
Shareholder advisory group ISS has recommended investors vote against the Barinboim-led consortium's offer. (Reporting by Pushkala Aripaka and Muvija M in Bengaluru; Editing by Rashmi Aich, Uttaresh.V and Emelia Sithole-Matarise)
