Playtech Sells Off Stake in Plus500

This story was published more than 2 years ago.

Internet gaming group Playtech has announced that they've sold their 9.99% holding of trading platform Plus500 for about £176 million.

The company made the move to refinance their debt after they purchased Italian betting group Snaitech in August. The company said that they'd use the proceeds of the sale to reduce their debt. The move was expected by some in the gaming industry, with Goodbody Gaming and Leisure noting: This morning's announcement will come as no surprise.

"To recap, ahead of its upcoming refinancing of c.€1bn of debt to fund the Snaitech deal, Playtech had adjusted gross cash of €563m on the balance sheet at the end of H1 2018, of which c.€350m is potentially available to reduce the quantum of debt needed and it had been suggested that the Plus500 stake could be sold to further reduce the level of debt required."

Plus500 has been having a banner year, as the company's stock surged by 90% this calendar year, with the first half resulting in a 147% rise in revenues. Playtech is obviously using this windfall to pick an optimum time to leverage their stake for other purposes.

About the author

Dustin Jermalowicz // News Editor
Dustin Jermalowicz
Dustin has a long-standing passion for gambling. He has been writing professionally on the subject and breaking industry news for Casino Listings since 2011. His favorite casino games include Blackjack, Poker, and Hi/Lo. A proud native of Detroit, Dustin currently lives in Michigan.
2 replies • Last post

Comments

bgsharpe
Forum AngelForum Angel
sharpe's picture
Location: Sofia, Bulgaria
Joined: 4 Nov 2014
Posts: 7348
Thanks given: 3971
Thanks received: 1092
14 September 2018 - 11:20am
#1

Yeah, it looks to be the right time for Playtech to get rid of their Plus500 share because of their stock market value right now, more so Playtech needed the money to fund another purchase, sound like the perfect deal for them.

krcoolsongss
High RollerHigh Roller
coolsongss's picture
Joined: 2 Dec 2014
Posts: 2716
Thanks given: 2010
Thanks received: 1344
15 September 2018 - 4:10pm
#2

It is pretty surprising to know that M&A deals are actively done in the gambling industry.
Where the gambling is not fully legalized, this kind of new is very new.

I am a player of Playtech casinos especially Live casino, so I wish that their business continues 🙂