4th Jun 2015 08:55
LONDON (Alliance News) - Odey Asset Management LLP on Thursday said it does not intend to vote in favour of the 400 pence per share bid made for contracts-for-difference trading platform Plus500 Ltd by FTSE 250-listed gaming technology company Playtech PLC, saying the bid "materially undervalues" Plus500.
Odey, which on Tuesday increased its stake in Plus500 to 25.49%, having been steadily building up its stake in recent weeks, said Playtech's offer is "an opportunistic bid exploiting current regulatory issues and risks" and said it intends to vote against it.
"Even considering the current regulatory issues and near-term risks, we believe the intrinsic value of the business on a longer term view is materially higher than 400p," Odey said in a statement.
Odey added that while it understands that a cash acquisition of Plus500 makes sense for the company's management and staff, it believes the "current offer represents too great a discount compared to intrinsic valuation as a standalone entity" from the perspective of shareholders.
"Furthermore, we believe that the financial and strategic value of Plus500 to an industry bidder is significantly higher than valuation as a standalone entity," Odey added.
It added it is in favour of the approach Plus500 management has taken to Playtech's bid in opening the door for other companies to run the rule over its business and potentially make rival offers.
Shares in Plus500 were up 0.6% at 372.03 pence on Thursday, while Playtech shares were down 0.7% to 822.00p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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