Odey Asset Management does not intend to vote in favour of the cash acquisition of Plus500 at the price 400p per Plus500 share 

Odey Asset Management LLP, the largest individual shareholder in Plus500 Ltd. (“Plus500”), has submitted an announcement to the London Stock Exchange regarding Playtech Plc’s (“Playtech”) recent recommended cash offer of 400p per Plus500 share

The company Notes that:

“We believe 400p per Plus500 share in cash to be an opportunistic bid exploiting current regulatory issues and risks. In our view 400p materially undervalues Plus500 and we do not intend to vote in favour of the cash acquisition of Plus500 at this price. 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.

We understand that this cash acquisition may make sense for Plus500’s management and staff, whom we expect could be further incentivised by Playtech after the acquisition has completed. However, for independent shareholders we believe the current offer represents too great a discount compared to intrinsic valuation as a standalone entity.

Furthermore, we believe that the financial and strategic value of Plus500 to an industry bidder is significantly higher than valuation as a standalone entity.

We welcome Plus500 management’s approach to Playtech’s proposed cash acquisition, which allows other potential bidders the opportunity to appraise Plus500 with the same information as Playtech, and which allows management to cease its commitment to Playtech’s proposed cash acquisition should another bidder present a higher offer.”

Source: London Stock Exchange

 

 

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