Former Formula One team owner Eddie Jordan is part of a consortium that is considering offering £3 billion to Playtech as the London-listed gaming software provider becomes the focus of a potential ‘ war’ of bidding.
Last month, Playtech’s board recommended shareholders to accept a £2.7 billion takeover bid from Aristocrat, the Australian slot machine developer, and a rival bid from its second-largest shareholder, Gopher Investments.
JKO Play, the consortium created by Eddie Jordan and Keith O’Loughlin who previously ran the Nasdaq-listed Scientific Games sports betting operation, confirmed it was “considering making a competing bid for Playtech.”
JKO is in talks with US-based investment firm Centerbridge, among other potential partners, to fund a cash and equity offering for the deal.
Playtech confirmed that its board “has received a preliminary approach from JKO Play seeking access to certain ‘due diligence’ information in order to explore the terms on which an offer for all of Playtech’s issued and to be issued share capital could be done”.
Jordan’s leading role at JKO Play is just the latest step in a career that has ranged from an auto racing driver and F1 team owner to TV director and entrepreneur.
Eddie Jordan’s time-honored track record
After winning the Irish Kart Championship in 1971, he was racing in Formula 3 and Formula 2 throughout the 1970s. After suffering a series of major accidents, he assembled his eponymous racing team in 1980 and had significant success in the Formula 3 and Formula 3000 before assembling a Formula 1 team in 1990.
Among the drivers who were part of Jordan’s team are Michael Schumacher and Eddie Irvine, while Damon Hill, Nigel Mansell and Ayrton Senna (his favorite driver) also drove for him.
After selling a difficult Jordan Grand Prix in 1995, he became a BBC Formula 1 coverage reporter from 2009 to 2015, later moving to Channel 4.
Through his family office, Jordan has invested in a wide range of businesses over the past few years, from Celtic football club to Entain gaming company. Earlier this year, he created JKO Capital to seek investments in gaming and entertainment companies.
The next steps in the Playtech acquisition chapter
In addition to JKO Play’s approach, Playtech is also in talks with Caliente, a gaming company that operates predominantly in Mexico, about a possible joint venture through a public merger with a special-purpose acquisition company (Spac) of according to Sky News, which first reported on Jordan’s potential move at Playtech.
Aristocrat said it was moving ahead with regulatory approval relating to its own offer for Playtech, taking financing facilities with a capital increase of A$1.3 billion (£700m) with “strong absorption by Aristocrat shareholders”.
During his full-year results presentation on Thursday, Trevor Croker, Aristocrat’s chief executive, said he had also received irrevocable commitments and letters of intent supporting the acquisition of a Playtech investor representing 16.5% of the shareholder base. of the listed company in London.
The next step in the potential bidding war will be the UK Acquisition Panel announcing a deadline by when JKO Play and Gopher must “clarify their intentions” towards Playtech.
