Following our report on Playtech’s funds-raising on Thursday, Teddy Sagi’s company seems to be approaching Plus500 directly again, confirming its strong interest in the Israeli brokerage house.
The company has announced that after its purchasing activity it holds now in total 10,756,067 ordinary shares in Plus500, making together a stake of 9.36% in Plus500’s issued ordinary share capital.
Moreover, management of Plus500, making 35.6% of Plus500 stake, is openly supporting the Playtech’s cash offer of 400p a share of the broker.
As TheMarker, an Israeli financial portal informed, Plus500 was close to a deal to be sold to CVC Fund for $1.4 billion, twiece that much as Playtech’s offer, and the private fund was conducting a due dilligence test on that agreement to reach joint control of Plus500 for £8 per share. The entire procedure has been halted due to UK accounts additinal AML testing and subsequent share price drop.
Additionally, Playtech has announced that its placing was finished with success, placing all 29,050,000 new ordinary shares for 780p a share. Thus the company gained around £227 million before expenses and according to official statement, it should be used for future acquisitions, where Plus500 is also included.
The decision will come in July 16 this year, where Plus500 shareholders will express their desire to accept bid for 400p a share. Odey Asset Management has already informed that it stands against the acquisition as it owns over 25%, albeit buying the stake even after the bid announcement.
Nevertheless, the largest shareholder of Playtech – Brickington, has already informed that it intends to take up 33.6% of the Placing to keep its current shareholding of the same portion.
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