Update Re Ladbrokes Services Agreement
Playtech plc
("Playtech," or the "Group")
Early determination of amounts due under PTTS/Ladbrokes services agreement
Playtech (LSE: PTEC) announces that it has entered into an agreement with Ladbrokes plc ("Ladbrokes") in relation to an early determination of amounts due to it under the marketing services agreement between PTTS and the Ladbrokes Group dated March 2013 at a level of £75 million. This agreement has been reached in anticipation of the proposed merger of the Ladbrokes Group and the Coral Group ("Merger") announced earlier today and is conditional upon completion of the Merger ("Completion").
With effect from Completion, Playtech shall become entitled to receive £75 million, of which £40 million shall be satisfied by way of the issue of shares in Ladbrokes on Completion and with a further guaranteed £35 million in cash paid upon delivery by Playtech of key operational milestones but, in any event, within 42 months following Completion.
This arrangement will provide Ladbrokes and Coral with the flexibility to achieve operational integration and realise synergies.
If Completion does not occur, the marketing services agreement shall continue in its prior form.
Separately, Playtech has committed to subscribe for approximately 22.9% of the 9.99% equity placing announced by Ladbrokes earlier today.
Mor Weizer, Chief Executive Officer of Playtech said:
"Both Ladbrokes and Coral are key licensees of the Group and we have been delighted to assist Ladbrokes in the turnaround of its online operations, again demonstrating the strength of Playtech's turnkey offering. We look forward to continuing our strong long term relationships with both groups and expect to play a key role in their future success, both before and after their proposed merger."
- Ends -
For further information contact
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Playtech PLC c/o Bell Pottinger Mor Weizer, Chief Executive Officer Ron Hoffman, Chief Financial Officer Andrew Smith, Head of Investor Relations
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+44 (0) 20 3772 2500
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Canaccord Genuity Limited Bruce Garrow Piers Coombs Mark Whitmore
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+44 (0) 20 7523 8000 |
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Bell Pottinger David Rydell / Olly Scott / David Bass / James Newman / Laura Jaques |
+44 (0)20 3772 2500 |
This information is provided by RNS
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