There has been much noise recently in the mainstream press as to why the Central Bank of Ireland intervened in…
There has been much noise recently in the mainstream press as to why the Central Bank of Ireland intervened in the proposed purchase of retail electronic trading firm AvaTrade by gaming giant Playtech PLC (LON:PTEC) most of which have been speculative, or representative of one side with a specific agenda.
This is hardly surprising when considering that the Central Bank of Ireland itself is maintaining a very strict silence on the matter.
In keeping with FinanceFeeds’ ethos of gaining impartial information direct from the source from which it originates, we had a discussion with senior officials at the Central Bank of Ireland in order to clarify the real reason for the deal between the two companies having been postponed, as it was the CBI itself which took action to stop Playtech’s proposed plans to acquire AvaTrade.
The Central Bank of Ireland’s official explained to FinanceFeeds
“Acquiring transactions for Central Bank Regulated entities are assessed in accordance with the Central Bank’s published procedures and the relevant legislative timelines. The Central Bank has no other comment to make.”
This direct discussion with the Central Bank of Ireland demonstrated that there is no possible way due to the commercial sensitivity of the matter, that the regulator itself could have divulged any matters relating to this to any news sources, and that and that the real reason for intervention is not public information.
Today, FinanceFeeds discussed this with a spokesman for Playtech, who explained to us that
“Playtech has engaged with the CBI and now intends to formally challenge its position. We are not going to go into any specifics as it may prejudice our legal position. We will update the market in due course on major developments.”
Background remains as per commercial statements
Originally, Playtech had announced publicly that:
“Further to its announcement dated 18 September 2015, the Board announces an update on the acquisition of Ava Trade Ltd. (“Ava Trade”).”
“Late on Friday 2 October 2015, the Company received a letter from the Central Bank of Ireland (“CBI”) opposing the proposed acquisition of Ava Trade. Having taken legal advice and having regard to the circumstances at hand, the Company will be seeking clarification from the CBI today and to engage with them in order to discuss certain issues raised in the letter which the Company believes can be addressed to the CBI’s satisfaction.”
“The Company has already received approval for the Ava Trade acquisition from the Financial Services Commission in the British Virgin Islands.”
“In relation to the proposed acquisition of Plus500 Ltd, Playtech continues to work towards securing the one outstanding regulatory approval, having already received approval from the Cyprus Securities Exchange Commission.”
Playtech had yesterday issued a notice clarifying its position that it intends to challenge the Central Bank of Ireland’s decision, by stating:
“Further to its announcement yesterday, the Board announces an update on the acquisition of Ava Trade Ltd. (“Ava Trade”).”
“The Central Bank of Ireland (“CBI”) has reverted to the Company’s Irish legal advisers and clarified its position. Following this communication and having taken legal advice, the Company intends to formally challenge the decision.”
FinanceFeeds’ discussions with Playtech and the Central Bank of Ireland confirm that there have been no further developments with regard to the matter, and that neither the the regulator nor the company itself would not have divulged any information to any external sources.
#avatrade, #bank of ireland, #featured, #playtech, #statement