Playtech has decided to abandon their plan to make their joint venture with Mexican operator Caliente, Caliplay, a publicly traded entity.
Earlier this year, Playtech revealed their intentions to take Caliplay public by merging it with a special purpose acquisition company (SPAC). This SPAC would also collaborate with a major media company to reach Latin American customers in the United States.
However, Playtech stated that the stock market has significantly deteriorated since they initially contemplated this transaction. The S&P 500 has experienced a substantial decline from its peak earlier this year.
The Playtech board indicated that due to these market conditions, the deal is no longer feasible.
Despite the cancellation of the Caliplay SPAC agreement, Playtech affirmed their commitment to developing a business for US Hispanic customers utilizing the Caliente brand, which enjoys widespread popularity in Mexico.
The board expressed their intention to explore alternative avenues for collaborating with Caliplay to establish a separate US gaming venture leveraging the Caliente brand, with a focus on the US Hispanic community.
Playtechs governing body has engaged in further talks with the special purpose acquisition company (SPAC) and its associated entities regarding alternative prospects. These discussions are still in their initial phases, and additional information will be provided if required.
In addition to the Caliente update, Playtechs board also observed that overall business performance has surpassed expectations thus far this year.
The board stated: “Specifically, the company’s B2B operations have exhibited robust performance, fueled by strong momentum in the Americas (including Caliente and other structured agreements) and solid results across the broader B2B business.” “Snaitech’s online operations, retail recovery, and favorable sporting event outcomes have driven its impressive performance.
“This business momentum instills confidence in the board regarding the company’s prospects for the 2022 fiscal year and beyond, and its capacity to generate value for investors.”
Shortly after the announcement, prospective buyer TTB Partners declared that it would not be submitting a proposal to acquire Playtech, despite previously expressing interest. TTB’s offer was endorsed by Playtech CEO Mor Weizer and emerged following Playtech shareholders rejecting a proposal from land-based gaming giant Aristocrat.
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