Last week, the Playtech Malta subsidiary announced it had sought a declaration from the English courts to obtain clarification on a point of disagreement with Caliplay, its joint venture with Mexican operator Caliente.
The dispute relates to whether Caliplay still holds an option to redeem the additional services fee element of the strategic agreement between the two parties.
The option was structured so that the amount payable by Caliplay to Playtech upon exercise would be agreed between the two parties or, if not possible, determined by an independent investment bank valuing Playtech’s current entitlement to receive the additional services fee until 31 December 2034.
Playtech said the option is stated as being exercisable for 45 days following the approval of the audited accounts of Caliplay for the year ended 31 December 2021. The tech giant also said the option had expired and referred to this in its interim report for the six-month period ended 30 June 2022.
In response, Caliplay acknowledged the option allows it to redeem the additional services fee element payable to Playtech Malta pursuant to the strategic agreement, and that this is exercisable for 45 days following the approval of its audited accounts by its board for the 2021 fiscal year. However, Caliplay said this is yet to take place.
Caliplay said Playtech failed to include reference to board approval in its announcement, or its interim report for the six-month period ended 30 June 2022, which was published on 22 September 2022.
“As Playtech correctly notes, Caliplay believes the option has not expired,” Caliplay said in a statement. “Caliplay made this clear to Playtech on 23 December 2022 when it challenged the accuracy of its 22 September 2022 announcement.
“This (court) claim was filed without warning and despite both sides being currently engaged in a mutually agreed resolution process. Contrary to Playtech’s announcement, Caliplay is not aware that any claim has been issued against it by Playtech, as opposed to its subsidiary, Playtech Malta.
“Caliplay remains keen to resolve this matter swiftly and is committed to the ongoing discussions.”