Playtech Plc · LSE:PTEC
Playtech — Merger or Acquisition (October 2008)
11 slides from Playtech's merger presentation, Oct 20, 2008
Slide 1: Online gaming software licence agreement with William Hill
Online gaming software licence agreement with William Hill Acquisition of affiliate and other assets and immediate sale to William Hill 20 October 2008
Slide 2: Agenda
Agenda Introduction Transaction overview Summary Questions & Answers 2
Slide 3: Introduction: Roger Withers, Chairman
Introduction: Roger Withers, Chairman • Major new software licence to supply William Hill Online • Acquisition from affiliates and other parties of online gaming assets and immediate sale of majority to William Hill in return for 29 per cent. of enlarged William Hill Online • To be funded from inter
Slide 4: Transaction overview
@® playtech Transaction overview
Slide 5: Award of major new licence
Award of major new licence • Online gaming software licence agreement with William Hill Online to supply - Casino - Poker - Other products • Commencing on a phased basis in early January 2009 and culminating in exclusive agreement to supply casino and poker software from January 2010 • Eight year li
Slide 6: Acquisitions from affiliates and other parties
Acquisitions from affiliates and other parties • Acquisition of certain online gaming marketing assets, businesses and contracts from affiliate (Uniplay) and other third parties for a total consideration of up to $250 million in cash • Asset purchases • For the six months to 30 June 08, purchased as
Slide 7: Immediate sale to William Hill
Immediate sale to William Hill • Immediate sale of the majority of the purchased assets to William Hill • Consideration is a 29 per cent. stake in William Hill’s enlarged online business - based on profit contribution of the assets - reflecting a reduction in future revenue • William Hill has an opt
Slide 8: Financial summary
Financial summary • Earnings enhancing from January 2009 • Software licence income • 29 per cent. share in William Hill online profits - Principally accounted for as income from Associate • Potential significant capital gain if William Hill exercises its buyout rights for Playtech’s stake. Right to
Slide 9: Rationale
Rationale • Significantly earnings enhancing • Increases the value of the affiliate option by injection into William Hill • Adds a high profile and cash generative licensee • Maintains Playtech’s position as an independent service provider 9
Slide 10: Summary
Summary • Significant new licence with leading gambling operator • Playtech utilising relationships to benefit of shareholders • Acquiring mainly assets and contracts not liabilities • Majority of assets injected into William Hill’s online business • Playtech’s consideration in form of minimum 29 pe
Slide 11: Questions & Answers
@® playtech Questions & Answers