Playtech Invest 3% Stake in Ladbrokes

Israeli based igaming software and technology provider Playtech has informed shareholders that it has acquired a 3% stake in troubled igaming operator Ladbrokes Plc. According to UK newpaper the Daily Telegraph ,The Playtech board informed shareholders that it had purchased its stake at a value of (US) $38m, calming speculation that Playtech would acquire outright Ladbrokes.

Playtech controlled by Israeli businessman Teddy Sagi  bought the shares from Ladbrokes’ largest shareholder, Schroders, which reduced its stake to 9.9%. the Daily Telegraph reports that Playtech had purchased its shares from  Schroders at £1.70

After a troubled year for Ladbrokes, which saw the operator announce profit and revenue warnings to the city. Ladbrokes remains the UK’s second biggest gaming companies behind William Hill, the betting and gaming operator Playtech had a successful joint venture which saw Playtech sell its total shares in the company for £425M

Playtech have been collaborating with Labrokes management, in order to streamline the companies technical operations. This 2013 saw the announcement that Playtech would announce the supply of end to end igaming software services for Ladbrokes. Currently the company provides igaming network services for Ladbrokes, poker and bingo products, Ladbrokes also increased its casino games catalog by publishing Playtech casino games content. Ladbrokes have cited poor performance in igaming as a key area that the company must improve

The Daily Telegraph article quotes an igaming industry analyst commenting that the move by Playtech to acquire 3% in Ladbrokes as a “typical Sagi move. He wins either way. If Playtech turns round Ladbrokes, the shares go up. If not, it’ll get bid for and he can always sell out to a bidder.