ARISTOCRAT COMMITS TO ONLINE CASINOS

Australian poker machine giant Aristocrat Leisure says it will become a major player in online casino gambling one way or another, after the collapse of its $4 billion takeover of British gambling technology outfit Playtech.

The $27 billion group’s takeover of Playtech, which makes software for online casinos, was killed by a group of Hong Kong investors that bought up a blocking stake in recent months and voted against the £2.1 billion deal.

Aristocrat CEO Trevor Croker said 80 per cent of the votes against the deal were from investors who bought their shares after it announced the takeover in October last year and refused to engage over the deal.

“Obviously it’s a disappointing outcome. It was a recommended offer by the [Playtech] board and supported by the majority of Playtech shareholders,” he said. “These developments… have been largely beyond Aristocrat’s control.”

Aristocrat needed 75 per cent of votes to support the deal but just under 55 per cent went in its favour at a shareholder meeting in London on Wednesday.

Aristocrat is one of the world’s largest manufacturers of poker machines and also has a growing digital business that includes both mobile video games and pokies-style “social casino” games, which are played without money.

Online casino gambling is illegal in Australia, but it is being gradually legalised in the Unites States, which Mr Croker said was the biggest opportunity for Aristocrat.

“At this stage, we don’t see an obvious replacement for Playtech. A ‘buy and build’ strategy could be the most likely outcome from here, but that will take time.”

 

Read the full story here>>>  www.smh.com.au/business/companies/investors-reject-aristocrat-s-4b-playtech-takeover-20220203-p59tew.ht