As was largely anticipated, Aristocrat failed in its attempt to win a shareholder vote to buy British gambling software company Playtech (PTEC LN) for 2.1bn Pounds – it looks like an Asian consortium has taken the box seat here with a blocking stake. This is not fresh news and it looks like it’s back to the drawing board for ALL which must be frustrating after Playtech’s board had recommended shareholders accept the bid but it’s clearly a “hot” sector. ALL have already flagged they have considered other options including bidding for parts of the business or simply moving on all together.
We continue to like ALL especially as the global economy reopens and we don’t feel the board will panic into buying something at a silly price for the sake of expansion.
MM remains long and bullish ALL
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