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Playtech investors reject Finalto sale to consortium led by Barinboim

By Reuters

-A majority of Playtech’s shareholders on Wednesday rejected the gambling software maker’s plan to sell its financial trading unit for up to $210 million to a consortium led by Israeli private equity group Barinboim Group.

The vote is a win for Playtech’s second-biggest shareholder Gopher Investments, who had clashed with the company over the rejection of its $250 million proposal for the Finalto unit.

London-listed Playtech said it was now seeking to engage with Gopher regarding the sale of Finalto, which has been growing rapidly as market volatility brought on by the pandemic made it a lucrative target.

Gopher last month offered $10 million to Playtech as a breakup fee, if the company accepted its $250 million offer for Finalto.

Playtech had said it would have to pay the Barinboim consortium $8.8 million if its investors vote against the deal that was agreed between the two parties in May.

At a general meeting on Wednesday, 68.3% of votes cast were against the sale of Finalto to the consortium.