Playtech plans £250 million fundraise for Plus500 acquisition

Igaming technology provider Playtech has announced that it plans to raise £250 million to fund its planned £450 million acquisition of financial trading platform Plus500. Playtech is prepared to sell +29 million new shares, an equivalent of a 9.9% stake in the company.

Playtech founder Teddy Sagi will retain 33% holding in Playtech via Brickington Holdings Company, Sagi is prepared to faid the acquisition of Plus500 by contributing $100 million of his own personal funds

The new share distribution will maintain Playtech’s positive cash balance of £692 million (reported for year-end 2014). Canaccord Genuity and UBS are joint bookrunners for the placing, while Shore Capital as the lead manager.

Plus500 governance has agreed to sell the company for a £450 million cash acquisition by Playtech, despite opposition from its largest shareholder Odey Asset Management who labelled Playtech’s offer as “opportunistic”, since it exploits Plus500’s current UK trading difficulties.

“Today’s equity fundraising, in conjunction with new debt facilities, which we are in the process of securing, will improve the efficiency of Playtech’s capital structure whilst maintaining the financial flexibility to pursue acquisitions,” Chief Executive Mor Weizer said in a statement published this morning.

Playtech governance is keen to extend the technology providers products and services for the financial trading markets. In April the firm acquired a 91% stake in forex and binary options operator TradeFX