Playtech has abandoned plans to spin off and go public with Caliplay, a joint venture with Mexican operator Caliente.
Earlier this year, Playtech revealed plans to spin off Caliplay, a joint venture with Caliente. The business will then merge with a Special Purpose Acquisition Company (SPAC), allowing it to go public. SPAC will also partner with major media businesses focused on reaching Latin American customers in the US market.
However, Playtech pointed out that “capital market conditions have deteriorated significantly since the transaction was first considered,” and the S & P 500 fell by more than 17% from its peak at the beginning of the year.
“Therefore, this transaction is no longer being pursued in the same manner,” said Playtech’s board of directors.
While no deal will be made with Caliplay SPAC, Playtech said it is working to build a business aimed at Hispanic customers in the United States with the Caliente brand, the market leader in Mexico.
“However, the company continues to explore alternative opportunities with Caliplay management to build a standalone U.S. gaming business under the Caliente brand focused on the Hispanic community in the U.S.,” the board said. rice field. “The parties are also continuing discussions with SPAC and its affiliates regarding this alternative opportunity. Discussions are in the early stages and further updates will be made as necessary.”
As with the Caliente update, Playtech’s board also noted that the business as a whole has exceeded expectations so far this year.
“In particular, the company has seen B2B performance driven by very strong momentum from the Americas, including Caliente and other structured agreements, in addition to strong performance across its broader B2B business. ‘ said the board. “Snaitech is performing well with online business, retail recovery and strong performance in sports.
“This momentum across the business gives the board a great deal of confidence in the company’s outlook for 2022 and beyond and its ability to provide significant value to shareholders.”
The announcement will be made shortly after prospective buyer TTB Partners has announced that it will not submit a bid to acquire Playtech, despite its initial interests. The TTB bid, supported by Playtech CEO Mor Weizer, appeared after Playtech shareholders voted against a proposal from land-based game console giant Aristocrat.
