Playtech Strips off Plus500 Shareholding as Founders Decrease Stake

Staff Writer Industry News, Playtech 797

After announcing a revenue drop in August due to reduced success in the Asian market, London-listed iGaming operator and solution supplier Playtech has now sold its stake in Plus500, the financial trading platform, which has resulted in gross proceeds surging roughly £176 million.

Spending the Profit Smart

The company declared the sale of its stake last week and the platform also confirmed that its founders had also sold its shares corresponding to close to 8 per cent of the firm’s issued share capital.

What this has done is get Playtech 15.50 per share for its 11.4 million shares in Plus500, and the proceeds will be used for “general corporate purposes and debt reduction”. The share of dividend from Plus500 amounting to $16 million for the first six months of the year will be given to the firm.

Due to delays in securing regulatory approval, the firm had to withdraw its proposal back in 2015. Playtech had then proposed to acquire Plus500 for £459.6 million.

More Sales

Plus500 founders have further sold 9.4 million shares held by them at the same price of £15.50 per share, along with the 9.9 per cent stake sold by Playtech. The business quintet (Alon Gonen, Gal Haber, Elad Ben-Izhak, Omer Elazari and Shlomi Weizmann) have hence made gross proceeds increase approximately £145 million.

The blockbuster results for the first half of 2018 for Plus500 have been posted, and they show that market volatility and flourishing trading in cryptocurrency derivatives played their part in the success.

The revenues climbed a fantastic 147 per cent, and net profits tripled. The company is however aware that “exceptional” results were a one-off that was “unlikely” to be repeated. Plus500 has declared that the founders had decided to offer a portion of their shares for sale due to considerable demand from a small number of institutional investors.

After the sale, combined shareholding in Plus500 of about 8 per cent is retained by the founders.

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