Playtech raises £176m through Plus500 stake sale

Playtech raises £176m through Plus500 stake sale

Friday, September 7, 2018 Posted by News Team
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Playtech had once hoped to acquire financial trading business in £460m deal

Gaming solutions giant Playtech has sold its stake in contracts-for-difference trading business Plus500, almost three years after its acquisition of the company collapsed. 

Playtech has sold its stake of 11.4m ordinary shares, equivalent to 9.99% of Plus500’s issued share capital, at a price of 1,550 pence per ordinary share.

It has raised £176m from the sale, with the money to be used for general corporate purposes and debt reduction. 

The company has not given any reason for the decision to sell its stake, which sees it give up any interest in Plus500’s ordinary shares. 

The sale comes days after a group of Plus500’s founding shareholders raised around £145m from the sale of 9.4m ordinary shares, or an 8% stake in the business. This was said to be due to significant demand from institutional investors. 

The sale ends Playtech’s association with Plus500, a company which it once hoped to acquire to bolster its trading division. It agreed to acquire the business for £460m in 2015, only to walk away from the deal after the Financial Conduct Authority (FCA) raised concerns about the transaction. 

Around the same time, the £69m acquisition of Dublin-based contracts-for-difference broker AvaTrade collapsed in the face of opposition from the Central Bank of Ireland.

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