18th Jun 2015 13:14
LONDON (Alliance News) - Playtech PLC Thursday raised GBP227 million before expenses by issuing new shares to fund acquisitions including the proposed purchase of Plus500 Ltd.
In a statement, the gambling and financial trading company said 29.1 million new shares were placed at 780 pence each through an accelerated bookbuild. The shares equate to 9.9% of the company's existing shares in issue.
Brickington, the company's largest shareholder, took up about one-third of the placing so it can maintain its 33.6% stake in the company.
"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 in both the gambling and financial trading space to deliver long term value for our shareholders," Chief Executive Mor Weizer said in a statement.
Playtech has already reached a deal to acquire online contracts-for-difference trading platform Plus500 in a GBP459.6 million deal. Playtech said it now owns 9.36% of Plus500, following share purchases on Thursday morning.
Plus500's shares experienced a big drop prior to the proposed acquisition by Playtech, as the contracts-for-difference trading provider was asked by regulators to tighten its anti-money laundering procedures.
Playtech said other potential acquisitions include a midsize broker over which TradeFX Ltd, the contracts-for-difference and options broker it acquired in April, has an option to buy. Playtech agreed to pay up to EUR458 million for a 91% stake TradeFX.
In addition, Playtech said it is "in the process" to secure debt financing to "maximise" its capital efficiency in the context of its ongoing acquisition strategy".
Playtech shares were down 1.9% at 793.00 pence on Thursday morning.
By Samuel Agini; [email protected]; @samuelagini
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