Further announcement re: William Hill Online

RNS Number : 0884U

Playtech Limited

20 December 2012

 



Playtech Limited

("Playtech" or the "Company")

Further announcement re: William Hill Online

Playtech, (LSE: PTEC) the international designer, developer, licensor and provider of software and services for the online, mobile, TV and land-based gaming industry, notes today's announcement by William Hill plc ("William Hill") and GVC Holdings plc ("GVC") in connection with the recommended offer (the "WH/GVC Offer") for Sportingbet plc ("Sportingbet").

Under the terms of the Shareholders' Agreement relating to William Hill Online, William Hill is bound to conduct its remote gambling business through the William Hill Online business, in which Playtech is a 29 per cent shareholder.

Therefore, if the WH/GVC Offer is completed, William Hill will be obliged to offer to sell the remote gambling activities of Sportingbet acquired by it(the "Sportingbet Activities") to William Hill Online within six months of completion of their acquisition, and Playtech has the right, in its absolute discretion, to determine whether William Hill Online proceeds with the acquisition of the Sportingbet Activities.

Playtech believes that it is likely that the acquisition of the Sportingbet Activities would add considerable value to William Hill Online. The acquisition would offer a range of potential cost and sales synergies including access to new customers in regulated markets including Sportingbet's established  business in Australia where William Hill Online currently does not have a footprint.

Playtech expects that the potential contribution of the Sportingbet Activities and associated synergies and cost savings will be taken into consideration as part of any valuation of William Hill Online.

Playtech will decide upon the merits of William Hill Online acquiring the Sportingbet Activities if and when required to do so. If the Company determines that William Hill Online should proceed with the acquisition, then it should take place within three months thereafter at a price determined on a stand-alone basis for the Sportingbet Activities. Playtech would need to provide its share of the acquisition funding or agree an alternative financing mechanism with William Hill.

As previously announced, William Hill has triggered the valuation process for William Hill Online as part of its right to exercise its call option over Playtech's  stake in the business and the rights attaching thereto. This valuation process, which is being undertaken on the basis of the value of William Hill Online as a whole with no discount for minority nor premium for control, is due to end in late February 2013. Following completion of the valuation process, William Hill will have a short period to determine whether it will exercise its option at the value determined by the process and, if it wishes to proceed, must complete the purchase by the end of April 2013, failing which the call option will lapse. There can be no certainty that William Hill will proceed with exercising the call option or complete the acquisition of Playtech's stake in William Hill Online.

As previously announced, William Hill Online is a key driver of William Hill's overall success and, as a major supplier to William Hill Online and the wider business, Playtech is dedicated to maintaining its close working relationship with William Hill to support its continued growth, as is the case with all of the Company's licensees.

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For further information contact:

Playtech Ltd Mor Weizer, Chief Executive Adam Kay, Head of Investor Relations c/o Pelham Bell Pottinger	[phone]
Pelham Bell Pottinger Olly Scott David Rydell / Guy Scarborough	[phone] [phone]

About Playtech                         

Playtech develops unified software platforms and content for the online and land-based gaming industry, together with providing a range of ancillary services such as marketing, hosting and CRM services.

The Group's capabilities enable the delivery of an integrated software or turnkey solution, with players accessing online, broadcast, mobile and server-based gaming terminals through a single account.

New licensees include existing online operators upgrading or diversifying their offering, land-based casino groups, government sponsored entities such as lotteries, and new entrants making their online gaming debut, particularly in newly-regulated markets.

Founded in 1999, Playtech is listed on the London Stock Exchange and has some 2,000 employees located in development centres in five countries.  Its leading gaming applications include casino, poker, bingo, sports betting, live, mobile and social gaming, casual and fixed odds games.

www.playtech.com

 

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