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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.