FTSE250 industry technology group Playtech Plc has confirmed this morning that it will sell its entire holding of ordinary shares in CFD trading platform Plus500.
Updating investors, Playtech governance has sanctioned the sale of 11.4 million shares in Plus500, targeting a sale price of ‘1,550 pence per ordinary share’ – £176 million (€196m/$228m).
Playtech’s current holding represents approximately 10% of Plus500’s issued share capital
During 2015, Playtech governance had pursued Plus500 as an acquisition target, seeking to add new assets to its financial trading division.
A £500 million acquisition of Plus500 by Playtech in 2015 could not be sanctioned due to FCA concerns.
Playtech would, therefore, invest as a shareholder in Plus500 enterprise, a ‘contract-for-difference’ online broker who this week was elevated to the FTSE250 index.
In its corporate update, Playtech governance details that the proceeds from the transaction will be used ‘for general corporate purposes and debt reduction’.
The FTSE technology group expects to complete its share divestment by 11 September 2018, detailing that it intends to have no active interest in Plus500 future.