Playtech Off-Loads Plus500 Shares
Playtech has announced that it has elected to sell its almost 10% stake in major online trading platform, Plus500, and analysts have said that they are not at all surprised, especially given the recent finalisation of its acquisition of Italy’s largest sportsbetting operator, Snaitech.
Playtech estimates in a recent regulatory filing, that the sale of the Plus500 shares will generate disposable capital to the tune of going on £176 million, which it then plans to use in order to reduce its debt as well as for general cash-flow purposes for the day-to-day running of its many corporate endeavours.
More Of The Same At Plus500
Following the announcement of the proposed sale of its shares in the online investment site, Plus500’s five founding members have in turn announced that they too, plan to sell off the lion’s share of their stake in the online business, thereby halving their respective shareholdings to roughly 8%. They too have cited freeing up capital for personal and miscellaneous other use, as the reason behind the motion.
No information regarding the identities of the prospective buyers in either deal has been made available as of yet. It would however appear, that the announcements are completely unrelated, and that the timing is as a matter of fact, pure coincidence.
Uncertain Times For Playtech
Whichever way you look at it, some changes to seem to be this way coming for Playtech. Investors sat up and took notice when information was released during August of last year, concerning a massive investment made by Jason Ader, with many speculating about the nature of and the reasoning behind the investment. Everything from challenging of corporate government structure within the company, to pushing for a complete sale altogether, has been guessed at.
This is made worse by the fact that the company had reported an earlier loss of 38% in earnings. Analysts agree that this may however have been purely as a result of the market shift caused by the Snaitech acquisition. The mere size of the deal was enough to bring about major regulatory risks and market uncertainty.
Playtech is expected to make public its final strategy regarding re-financing, specifically relating to the Snaitech deal, during the next couple of months.