888 reject £700m takeover bid by Playtech

Finance News

888 Holdings PLC leapt over 18% to 83.34p on Monday morning after The Sunday Times reported it was the target of a £700 million swoop by gambling tech provider Playtech PLC. 

Playtech made a written indicative approach to acquire 888 at a price of 156p a share in July, only for it to be rejected as undervaluing the company, the report said, citing City sources.

The report pointed out that since the board spurned Playtech’s approach, 888’s shares have fallen. They closed at 70.6p on Friday 1 December, valuing the business at little more than £300 million.

It noted the appointment in October of a new chief executive, the gambling industry veteran Per Widerström, has also failed to stop the rot with the company booted out of the FTSE 250 index last week.

In November, the Financial Times reported US gambling firm Draftkings Inc had discussed a bid for 888 over the summer with some of the UK betting operator’s top shareholders.