Playtech Sells Entire GVC Stake for £198 Million

Staff Writer Industry News, Playtech 1,062

Playtech has announced that it has sold its entire stake in multinational sports betting and gaming group GVC Holding.

The news broke last week after GVC opened negotiations to renew Ladbrokes’ contract with Playtech to supply gaming technology, but the major online gaming and financial trading systems provider decided to sell down its stake and pursue its own deals.

Playtech was one of the major shareholders in Ladbrokes which was acquired by GVC earlier this year for £4 billion and that gave the company a 3.4% stake in GVC when the acquisition was finalized. The stake amounted to 19.6 million shares which were sold at 1,010 pence each.  Playtech shares were trading down 0.7% at 806.40p while GVC Holdings shares were down 0.4% at 1,032.00p on Thursday. Playtech selling of stake follows an 18% jump in GVC’s share price over the last few weeks amid the excitement over sports betting expansion.

The sale was conducted via Goodbody, UBS Limited and Shore Capital for a grand total before broker commission of £198 million.

Playtech will use the money for general corporate purposes which may include M&A or to reduce the amount of debt to be raised as part of the acquisition of Snaitech.

The acquisition of Italian betting and gaming firm Snaitech SpA is expected to be completed until the end of June. Playtech signed an agreement to acquire 70.6% shareholdings of Snaitech for £256 million back in April, which will be followed by a mandatory takeover offer for the remaining shares. Including Snaitech’s debt, the enterprise value of the company would be nearly £746 million after the mandatory offer. The deal is expected to deliver cost synergies of Including Snaitech’s debt, the enterprise value of the company would be nearly £8.8 million. Playtech sees this move as a continuation of their strategy to invest in leading retail brands in fast growing, regulated markets.

Following a crackdown on gambling syndicates in Malaysia and drastic cuts on top stake limits in the UK, Playtech decided to sell GVC stake and seek it own deals.

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