25th Jan 2021 13:25
(Alliance News) - Playtech PLC on Monday confirmed it is in exclusive talks to sell its Financial division for up to USD200 million in cash as part of its simplification plans.
The FTSE 250 online gaming and sports betting firm will sell Finalto to a consortium backed by Barinboim Group, Leumi Partners Ltd, Phoenix Insurance Co Ltd and Menora Mivtachim Insurance Ltd.
Finalto provides a trading platform and liquidity services on a business-to-business basis, while its direct-to-consumer offering is Markets.com.
The announcement confirming talks followed "recent speculation in the Israeli media" and Playtech said that, while talks are progressing, there was no certainty that the deal will go ahead or on what terms.
The cash offer is for up to USD170 million, with USD170 million of this payable on completion. Additionally, around USD110 million of capital needed to run Finalto will be transferred with the business in the event of any sale.
Playtech highlighted its January 12 trading update, in which the company announced its strategic focus on simplifying the businesses and disposing of non-core assets, and therefore it has been evaluating all options for Finalto.
Shares in Playtech were down 0.1% at 484.70 pence in London on Monday afternoon.
By Anna Farley; [email protected]
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