18th Jun 2015 07:01
LONDON (Alliance News) - Playtech PLC Thursday unveiled plans for an equity fundraising, with the sale of new shares in the gambling and financial trading company to fund the proposed purchase of Plus500 Ltd and other acquisitions.
In a statement, Playtech said it is placing up to 29.1 million new shares with investors through an accelerated bookbuild, with the pricing of the shares yet to be determined. The shares equate to 9.9% of the company's existing shares in issue.
Brickington, the company's largest shareholder, wants to take 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.
Plus500's shares had experiences 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.
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".
By Samuel Agini; [email protected]; @samuelagini
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