By Sabela Ojea
Gopher Investments said Friday that it is offering Playtech PLC a break fee of $10 million as part of its negotiations for the acquisition of the latter’s financial trading arm Finalto.
Gopher Investments, which hold a 4.97% stake in Playtech and is the gambling and financial trading company’s second largest shareholder, said the break fee is dependant on several conditions.
The break fee is subject to Playtech engaging properly with Gopher and wouldn’t be paid if Playtech enters into a transaction for Finalto with a third party, among other conditions.
“This break fee provides greater certainty to the board and to shareholders that Gopher will be able to enter into and complete an acquisition of Finalto,” the company said.
Playtech PLC on July 2 confirmed that it had received a proposal from Gopher Investments to acquire its financial trading division, Finalto, for $250 million.
Shares at 0918 GMT were up 4.60 pence, or 1.1%, at 418.00 pence.
Write to Sabela Ojea at email@example.com; @sabelaojeaguix
Corrections & Amplifications
This story was corrected at 1001 GMT. The earlier version incorrectly stated the amount as GBP10 million in the headline.