The proposed £2.7 billion takeover of UK gambling software firm Playtech is set to collapse after the firm failed to secure sufficient backing from shareholders.

Isle of Man-based Playtech revealed on Wednesday that a count of proxy votes showed it will not achieve the 75% approval figure needed to agree to the takeover by Australian slot machine firm Aristocrat.

A general shareholder meeting is also due to take place later on Wednesday.

Aristocrat’s offer is now expected to lapse, forcing the Sydney-based company to “accelerate alternative plans”.

Last week, Playtech threw its backing further behind the deal after reports that a bloc of Asia-based investors was set to vote against the move.

It is understood that the group, which largely bought into the firm above Aristocrat’s original offer price of 680p per share, own around 27% of Playtech shares.

Aristocrat chief executive and managing director Trevor Croker said: “We are disappointed that our recommended offer to acquire Playtech plc is expected to lapse.

“Notwithstanding extensive due diligence on Aristocrat’s part, developments since the announcement of our offer have been highly unusual and largely beyond Aristocrat’s control.

“In particular, the emergence of a certain group of shareholders who built a blocking stake while refusing to engage with either ourselves or Playtech materially impacted the prospects for the success of our offer, which had been recommended by the board of Playtech.”

It is the latest hitch in the Playtech takeover process, with former Formula One boss Eddie Jordan pulling out of the battle for the firm last month.

Playtech chief executive officer Mor Weizer said the business is still in a “strong position” as it also reported positive trading since its last update in November.

“This progress reflects the quality of our technology and products and the hard work and commitment of our talented team,” he added.

“We remain confident in our long-term growth prospects and, in particular, our ability to benefit from the structured agreements (including Caliente) that are already allowing Playtech to access newly-opened gaming markets.”