Playtech has determined to scrap their plans to make their joint venture with Caliente, Caliplay, public through an initial public offering.
Earlier this year, Playtech declared they were going to take Caliplay public. They were going to combine with a special purpose acquisition company to make this occur. This SPAC was going to collaborate with a major media company to reach Hispanic consumers in the US.
But Playtech stated the market has become significantly worse since they initially considered this. The S&P 500 has plummeted considerably this year.
Playtech’s board stated the agreement is no longer a wise decision.
Even though the SPAC deal is off, Playtech still desires to utilize the Caliente brand to reach Hispanic consumers in the US. Caliente is a prominent name in Mexico.
The board stated they are exploring alternative methods to work with Caliplay to establish a separate gambling enterprise in the US under the Caliente brand. They want to concentrate on Hispanic consumers in the US.
Both sides are still in talks regarding this potential chance with the SPAC and its partners. These talks are still in their initial phases, and any further information will be shared if needed.
Along with the latest news on Caliente, the Playtech board also emphasized that the overall business performance has exceeded expectations so far this year.
The board stated: “Specifically, the company has observed that B2B business results have been fueled by strong progress in the Americas (including Caliente and other structured agreements), as well as robust performance across broader B2B operations. Snaitech’s online business, retail recovery, and positive sporting outcomes have driven outstanding performance.
“This business momentum gives the board confidence in the company’s outlook for the 2022 fiscal year and beyond, and its capacity to generate significant value for investors.”
Shortly after the announcement, prospective buyer TTB Partners declared that they would not submit a proposal to acquire Playtech, despite initial interest. TTB’s bid was backed by Playtech CEO Mor Weizer and emerged after Playtech shareholders rejected an offer from land-based gaming machine giant Aristocrat.
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