Plus500 Ltd, a forex brokerage house, listed on London Stock Exchange, informed about its remediation plan for its client after the concerning freeze in May 18.
On June 8 (Monday), around 23,000 clients could log into their account since the above-mentioned freeze, mostly mentioned in connection to system overload in Plus500.
From now, the clients can trade again on their accounts, fully deposit or withdraw funds. Naturally some of them, full of worries, withdrew their funds, approximately 5% of the clients. Nevertheless, majority of them, around 61%, continued in their trading activity, enjoying their free trade again.
Now, Plus500 continues in communication with non-active clients, who did not provide the needed documents to send them again so they could start with trading as well.
Generally, the remediation actions are now fully implemented for approvals of Plus500 clients’ accounts.
The Chief Executive Officer, Gal Haber added: “We have made progress in reapproving customer accounts during the last week and as a result expect a majority of clients who have completed the remedial AML procedures to be unfrozen within the previously expressed timeline. This will be followed by contacting inactive customers.”
Besides these positive news, there are still ongoing talks related to the acquisition of Plus500 by Teddy Sagi’s Playtech, as we mentioned earlier.
As freeze of the accounts spurred hysteria among clients for a short time, stocks dropped even below the price of 200p, providing an unprecedented situation for larger shareholders of Plus500. Odey Asset management has been said to raise its stake over 25% in the brokerage house, while JP Morgan added to its stake, reaching total of 8.49% in the Israeli company.
Owning such a large portion naturally came into contrast with the Playtech’s offer of 400p a share of the existing shareholders. Still getting more as the price what they paid for it now during the massive sell-off, mostly Odey remains critical to Playtech’s acquisition and calls the evaluation as undervaluated.
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