Aristocrat has tapped Goldman Sachs and UBS for its $5bn acquisition of online gambling software and content supplier Playtech.
Goldman Sachs is working as the adviser on the transaction and it is also working on a $1.3bn equity raising to fund the deal for Aristocrat along with UBS.
Shares are being sold in an entitlement offer at $41.85 each after the stock closed on Friday at $45.79.
The two companies are known to have been in discussions for months.
It comes as Aristocrat says it expects net profit after tax and amortisation to be $864m for 2021.
On an equity basis, the price being paid is $3.9bn and is a 58 per cent premium to the company’s last closing price on the London Stock Exchange.
It is 11.4 times Playtech’s adjusted earnings before interest, tax, depreciation and amortisation for the year to June.
Playtech’s board has recommended the offer and Aristocrat has undertakings from shareholders holding 20.7 per cent of the stock to vote in favour of the transaction.
Aristocrat will also use debt from the Term Loan B market to fund the transaction.
Playtech is one of the world’s largest online software gambling suppliers developing platforms and content for the gambling industry operating from 24 countries.
Add your comment to this story
Infrastructure assets an attractive buy to their existing investors
Investors in North Queensland Airports, Transgrid and Zenith Energy could buy out their partners rather than the infrastructure assets going to new owners.
Lack of trades as Healthscope debt value dives
Healthscope debt is believed to be tumbling in value, in what could point to the level of interest in Brookfield’s private hospital operator.
To join the conversation, please log in. Don't have an account? Register
Join the conversation, you are commenting as Logout