Playtech shares tumbled to their lowest level in nine months after a long-running takeover battle fizzled out without a buyer.
The stock sank 18.2 per cent, or 94p, to 422p after Hong Kong-based TT Bond Partners (TTB), the gambling software company’s third largest shareholder, announced it would not be making an offer for the firm as a result of ‘challenging market conditions’ despite the deadline to make an offer having been extended twice.
The decision by TTB to abandon its pursuit of Playtech marks an end to a heated nine-month-long tussle over the future of the company.
No dice: Playtech stock sank 18.3% after Hong Kong-based TT Bond Partners, the gambling software company’s third largest shareholder, announced it would not be making an offer
Last October, the company agreed a £2.7billion offer from Australian casino group Aristocrat Leisure, which sent the share price soaring.
But the bid attracted interest from other potential suitors including another Hong Kong-based firm, asset manager Gopher Investment. Playtech was also circled by a vehicle led by former Formula One team boss Eddie Jordan.
Speculation over the company’s future intensified after the Aristocrat bid collapsed earlier this year after only 55 per cent of shareholders approved the deal, well short of the required threshold of 75 per cent.
In response to TTB’s decision to pull out yesterday, Playtech chief executive Mor Weizer said the company retained ‘strong momentum’ and remained ‘confident’ in its growth prospects.
But AJ Bell analyst Danni Hewson said Playtech had now been ‘ditched at the altar more times than investors care to remember.’
The FTSE 100 dropped 1.6 per cent, or 116.56 points, to 7039.81 and the FTSE 250 fell 1.2 per cent, or 230.7 points, to 18480.66.
Market sentiment was again weighed down by recession fears after the International Monetary Fund (IMF) warned the outlook for the global economy had ‘darkened significantly’ in recent months.
Stock Watch – Transglobe Energy
Transglobe Energy surged after signing a merger deal.
The oil and gas firm has agreed a tie-up with rival Vaalco Energy in an all-share deal that values Transglobe at £259million, higher than its market cap of around £193million.
Both boards have backed the merger, which will result in Transglobe shareholders owning 45.5 per cent of the combined company, while Vaalco investors will control the remaining 54.5 per cent.
Transglobe shares jumped 4.6 per cent, or 12p, to 275p.
IMF head Kristalina Georgieva also predicted the organisation would downgrade its global growth forecasts for 2022 and 2023 in an update later this month, adding that disruptions to European gas supplies could ‘plunge many economies into recession.’
The concerns sent Brent crude to under $98 a barrel. The slide sent shares in Shell down 3.3 per cent, or 65.6p, to 1936.4p and BP fell 3.5 per cent, or 13.25p, to 363.95p.
Mining groups were lower as traders fretted a global recession could cause a decline in commodity prices. Fresnillo fell 5.9 per cent, or 40.6p, to 644p, Rio Tinto dropped 4.7 per cent, or 225p, to 4567p, Antofagasta slipped 4.8 per cent, or 49.9p, to 991.6p and Glencore eased 4.1 per cent, or 17.15p, to 401.3p. Anglo American also lost 5.1 per cent, or 137.5p, to 2547.5p despite announcing a partnership with Japanese firm Nippon Steel.
Car insurers dropped after motor insurer Sabre warned soaring costs and inflation were weighing on the sector. Sabre plunged 39.8 per cent, or 75p, to 113.6p, Admiral tumbled 18.1 per cent, or 427.5p, to 1933.5p and Direct Line slumped 11.7 per cent, or 27.6p, to 208.8p.
Customer review website Trustpilot sank 22.1 per cent, or 20.75p, to 73.25p after reporting a slowdown in revenue growth and warning it faced a ‘rapidly changing and uncertain macroeconomic environment’.
It reported revenue growth of 18 per cent to £62million in the six months to the end of June, but this was slower than the 31 per cent recorded in the same period last year.
Music fund Hipgnosis said the value of its portfolio jumped 9.9 per cent to £1.9billion for the year.
The company, which buys up the rights to songs and earns money from their royalties, also said revenue for the year jumped 24.7 per cent to £170million.
The company holds the music catalogues of Shakira as well as Neil Young. Shares jumped 1.3 per cent, or 1.4p, to 109.6p.
