Shares in Playtech PLC (LSE:PTEC) fell sharply after Hong Kong-based investment company TTB Partners said it will not make an offer for the British gaming software company.
TTB announced its interest in bidding for the FTSE 250-listed group last February, after Playtech shareholders rejected a £2.1bn offer from Aristocrat Leisure.
TTB attributed its decision to drop its bid plans to “challenging underlying market conditions”, although it said it remains supportive of Playtech and intends to support the company in its efforts to maximise shareholder value.
Responding to the news, Playtech said its board remains “very confident” about the company’s positive long-term prospects.
The company said it had an “excellent” first half, with adjusted EBITDA expected to come in at more than €200mln, driven by both the B2B and B2C businesses.
“The excellent first-half results and momentum in the business gives the board great confidence in the company's prospects for FY 2022 and beyond, and the company's ability to deliver material value to its shareholders," it said.
"Playtech carries strong momentum going into H2 2022 and continues to perform very well across its core B2B and B2C businesses,” said CEO Mor Weizer.
“We remain confident in our long-term growth prospects and, in particular, our ability to benefit from the structured agreements that are already allowing Playtech to access newly opened gambling markets."
Chairman Brian Mattingley added: "This process has shone a spotlight on the fundamental premium value of Playtech's businesses and the board will continue to consider options to maximise value for all shareholders.”
Playtech shares dropped 19.5% to 415.40p in late morning trade.