PLAYTECH PAYS OFF PTTS ACQUISITION EARLY
4/17/2012 : PLAYTECH PAYS OFF PTTS ACQUISITION EARLY (Update)
Online gambling software developer gets a Euro 4.2 million discount for early payment
The Playtech acquisition of PT Turnkey Services Limited is to be finalised earlier than agreed with the payment of the remaining initial purchase price ahead of the agreed timeframe, in return for a Euro 4.2 million discount.
Playtech advised in a stock exchange advisory Tuesday that the main points of the transaction are:
* Consolidation of outstanding instalments of initial consideration of Euro 80.2 milion into one accelerated payment of Euro 76 million, representing a nominal discount of 5.2 percent;
* Payment will be funded from the Playtech's existing debt facilities;
* The decision takes into account the strong performance of PTTS business since acquisition;
* Consolidation of payments as detailed above represents a Related Party Transaction under AIM Rules for Companies
The PTTS acquisition was announced on 10 March 2011, with Playtech agreeing to pay Worldwide Online Enterprises Limited an initial cash consideration of Euro 140 million in broadly equal, non-interest bearing half-yearly instalments over the 30 months following completion of the acquisition in July 2011.
The vendor in the PTTS transaction, World Online Enterprises, is a Related Party as defined by the AIM Rules for Companies, and the Directors of the company, having consulted with its nominated adviser, consider that the terms of this transaction are fair and reasonable insofar as shareholders are concerned.
This discount for early payment will not affect any amounts which may become payable under the earn-out provisions agreed at the time of the acquisition of PTTS.
Playtech's advisory point out that PTTS’s performance since acquisition has been very strong and the first quarter of 2012 has been outstanding. Consequently, Playtech anticipates being able to repay the banking facilities drawn for the Discounted Initial Consideration within a short period of time.
The directors emphasise that monies raised as part of the Playtech GBP100 million equity placing in November 2011 will not be used for the early settlement, therefore remaining available for investment in further acquisitions and joint ventures.
