- Poker machine company Aristocrat Leisure (ALL) to purchase online gambling software and content supplier, Playtech, for $5 billion
- Aristocrat has offered £6.80 (around A$12.61) per share, a 58.4 per cent premium to the company’s closing price on Friday
- To help pay for the purchase, the company will undertake a $1.3 billion equity raise
- Shares will be offered at $41.85, an 8.6 per cent discount to the last closing price
- On the market, Aristocrat has entered a trading halt and last traded at $45.79 per share
Aristocrat Leisure (ALL) is looking to purchase online gambling software and content supplier, Playtech, for $5 billion.
The poker machine company has offered £6.80 (around A$12.61) per share, a 58.4 per cent premium to the company’s closing price on Friday.
Playtech’s Board and its largest shareholder had backed the offer, which is around 21 per cent of the company shares.
Aristocrat will pay $1.1 billion in existing cash, $2.8 billion from a loan and will undertake $1.3 billion equity raise.
The equity raise will be an entitlement offer, at one for 20.56 pro-rata accelerated renounceable offer.
Shares will be offered at $41.85, an 8.6 per cent discount to the last closing price of $45.79 per share.
Aristocrat CEO and Managing Director Trevor Crocker said the proposed takeover would bring together both parties technologies.
“The recommended offer is a full and fair value and reflects the strategic potential of the
combination in a global gaming sector that continues to migrate online, as a result of technology and entrenched consumer-driven change,” Mr Crocker said.
“The proposed acquisition continues Aristocrat’s approach of investing in medium to long-term growth and we are extremely excited by the opportunities that this will bring for our shareholders, people, customers and players.”
Aristocrat shares have been placed in a trading halt as it undertakes this entitlement offer.
Under the halt, trading in company shares will be paused until Thursday, October 21.
On the market, ALL last traded at $45.79 per share.