This site uses cookies to ensure the best viewing experience for our readers.
Playtech Offloads Stake in Trading Firm Plus500

Playtech Offloads Stake in Trading Firm Plus500

The online gambling company bought a 10% stake in London-listed Plus500 in 2015 as part of an attempt to acquire the then-struggling company

Dror Reich | 09:44, 09.09.18
London-listed online gambling company Playtech PLC has sold its 10% stake in London-listed trading firm Plus500, Playtech announced Friday. The company sold 11.4 million ordinary shares at 15.5 pounds per share, making for gross proceeds of around 176 million pounds (around $227.5 million).

For daily updates, subscribe to our newsletter by clicking here.

 

Plus500's stock was down 7.34% on Friday market close, dropping from 16.08 pounds to 14.9 pounds.

Plus500 CEO Asaf Elimelech. Photo: Keren Gafni Plus500 CEO Asaf Elimelech. Photo: Keren Gafni Plus500 CEO Asaf Elimelech. Photo: Keren Gafni

Playtech made a play for Plus500 in June 2015 after the latter's stock crashed by around 50% due to regulatory difficulties in the U.K. Playtech acquired 10% but its acquisition offer for the remaining shares, according to a company valuation of 460 million pounds, was rejected by shareholders who thought the value too low. Today Plus500 has a market capitalization of around 1.69 billion pounds.

Related stories

Plus500's current operations are buoyed by the growing popularity of crypto trading. The company reported record revenues of $465.5 million and earnings per share of $2.3 for the first half of 2018. The company's stock rose by almost 70% since the beginning of 2018, as of Friday.

In July, Playtech issued its second profit warning within a year, citing the highly competitive Asian market, and sending its shares to a four-year low. Also in July, the company completed its acquisition of Italian gambling company Snaitech S.p.A.

share on facebook share on twitter share on linkedin share on whatsapp share on mail

TAGS