Playtech Equity Raise: Placing of up to 29,050,000 Ordinary Shares 

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LSE has issued a press release regarding Playtech £0.25 Billion Equity Raise

  • The Placing Shares represent approximately 9.9 per cent. of the Company’s issued share capital immediately prior to the Placing and the number of Ordinary Shares in issue would increase from 293,532,617 Ordinary Shares immediately prior to this Placing to 322,582,617 Ordinary Shares upon Admission.
  • Brickington, the Company’s largest Shareholder with an interest in 33.6 per cent. of the Existing Shares, intends to take up 33.6 per cent. of the Placing so as to maintain its current shareholding. This constitutes a smaller related party transaction under the Listing Rules.
  • Admission of the Placing Shares is expected to become effective at or around 8.00 a.m. on 24 June 2015 and settlement is expected to occur on the same day.

Summary of the Placing

  • Placing of up to 29,050,000 Ordinary Shares with the price per Placing Share to be determined through an accelerated bookbuild
  • Placing represents approximately 9.9 per cent. of the Company’s current issued share capital
  • Brickington, the Company’s largest Shareholder with an interest in 33.6 per cent. of the Existing Shares, intends to take up 33.6 per cent. of the Placing so as to maintain its current shareholding
  • Playtech has appointed Canaccord Genuity as Sponsor and Joint Bookrunner, UBS as Joint Bookrunner and Shore Capital as Lead Manager to the Placing
  • Books are open with immediate effect

Background to and reasons for the Placing

  • Playtech has a strategy to acquire profitable, regulated, cash generative businesses with market leading positions
  • Placing proceeds will be used to fund future acquisitions including Plus500 and, potentially, a midsize B2C broker over which TradeFX has an option to purchase
  • Playtech is in the process of securing debt facilities in order to maximise the Group’s capital efficiency in the context of its ongoing acquisition strategy

Current trading

  • relation to Playtech’s core business, average daily run rate revenue for Q2 2015 is up over 25 per cent. on Q2 2014
  • The TradeFX business has continued to perform strongly with revenues to 31 May 2015 of US$42.2 million (same period in 2014 – US$24.5 million) and:
  • FTDs for core CFD B2C business to 31 May 2015: 18.2k (up from 13.6k in same period in 2014)
  • Active customers for core CFD B2C business to 31 May 2015: 32.0k (up from 24.6k in same period in 2014)
  • The Board remains confident in strong growth in 2015 and beyond

Mor Weizer, Chief Executive Officer of Playtech, commented:

“Playtech’s enviable M&A track record has been founded on its ability to be pro-active, facilitated by financial flexibility which has allowed it to be able to act from a position of strength. 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.”

Source: London Stock Exchange

 

 

 

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