Private equity firm Joffre Capital acquires minority stake in Playtika for $2.2 bln (updated)

Playtika Holding

28/06/2022 18:08

(Adds deal background, bylines)
    By Julie Zhu, Krystal Hu and Yuvraj Malik
    June 28 (Reuters) - Private equity firm Joffre Capital will
pay over $2.2 billion to acquire a minority stake in Israeli
gaming firm Playtika Holding Corp  PLTK.O  from a holding
company controlled by Chinese video gaming mogul Yuzhu Shi,
according to a regulatory filing on Tuesday.
    Joffre, a tech-focused buyout firm led by former Baidu
executive James Lu, will pay Playtika Holding UK II Limited
(PHUK II) $21 per share for 106.1 million shares, or 25.73% of
Playtika's outstanding shares, according to the filing. The
price represents a premium of about 46% to Monday closing price.
    Playtika's shares fell 6% to $13.5 at midday. 
    In February, Playtika said it would explore strategic
alternatives to maximize value for stockholders. A month
earlier, PHUK II, its largest shareholder with a stake of about
52%, said it was contemplating selling 15%-25% of Playtika's
outstanding shares.  urn:newsml:reuters.com:*:nL4N2U42TS
    The deal will likely result in Playtika concluding its
strategic review and remaining a public company, according to
sources familiar with the matter. 
    Shi, chairman of Giant Network Group  002558.SZ , controls
PHUK II via the Chinese online game developer and another entity
Giant Investment Co. The deal reduces PHUK II's stake in
Playtika by half to 25.73%. Joffre will nominate two board
members recommended by the Chinese investment group led by Shi.
    Founded in 2010, Playtika has been known for its
casino-themed games and operates apps for poker and solitaire.
The Israel-based company has more than 34 million monthly active
users and its popular games include Bingo Blitz and Slotomania,
according to its website.
    Playtika went public on the Nasdaq in January last year
above its target range of $27 per share, notching a record high
of $36 on the debut. The stock has since fallen 60%.
    In 2016, a group of Chinese investors including Shi's Giant
Network and Yunfeng Capital, a private equity firm founded by
Chinese billionaire Jack Ma, acquired Playtika from Caesars
Interactive for $4.4 billion.

 (Reporting by Julie Zhu in Hong Kong, Yuvraj Malik in
Bengaluru, and Krystal Hu in New York; Editing by Krishna
Chandra Eluri and Richard Chang)
 ((krystal.hu@thomsonreuters.com
yuvraj.malik@thomsonreuters.com;))