Igaming technology provider Playtech announced plans to raise €315 million (£250 million) in convertible bonds in order to fund potential corporate acquisitions.
The Israeli gambling technology provider stated that the convertible bonds would be used to increase funds and ease mechanisms for future acquisitions. Playtech added that it had identified a set of potential opportunities that would create ‘significant value to shareholders’.
In October Playtech CEO Mor Weizer confirmed that Playtech were confident of making a ‘next level’ acquisition by the end of H1 2015. The added €315 million will boost Playtech’s purchasing power, the firm’s cash and equivalents balance stood at a reported €402.4 million (£320 million) as of September 2014.
Investment Group Shore Capital speculated that the €315 million convertible bond Issue would likely see Playtech engaging in a ‘sizeable acquisition’ within the gambling sector.
The issued bond are set to carry a maturity date of 19 November 2019 and will be convertible with Playtech shares. Business news source IFA stated that full bond offering represented 10% of Playtech’s issued share capital.
Playtech and its advisers will disclose further information on the issuing of the convertible bond which is expected to be settled on 19 November