Playtech sells entire holding in Plus500

Maria Nikolova

The proceeds from the sale of approximately 11.4 million shares in Plus500 are set to be used for general corporate purposes and debt reduction.

Major transactions in shares in online trading company Plus500 Ltd (LON:PLUS) continue. Earlier today, Playtech PLC (LON:PTEC) announced the disposal of its entire holding in the broker.

In a filing with the London Stock Exchange, Playtech says that it has sold its entire holding of approximately 11.4 million ordinary shares in Plus500 at a price of 1,550 pence per ordinary share. Thus, Playtech is realising gross proceeds of approximately £176 million (equivalent to approximately €196 million).

Playtech explains it will use the proceeds for general corporate purposes and debt reduction.

The sale will not impact Playtech’s entitlement to the interim dividend announced by Plus500 on August 13, 2018, equivalent to approximately $16 million.

The stake represents approximately 9.99% of Plus500’s issued share capital. The sale is expected to settle on a T+2 basis, on September 11, 2018. Following the finalization of the sale, Playtech will no longer hold any interest in Plus500’s ordinary shares.

The announcement by Playtech is released less than 24 hours after the founders of Plus500 unveiled their plans to sell approximately 9.4 million shares in the company. On Thursday, September 6th, Alon Gonen, Gal Haber, Elad Ben-Izhak, Omer Elazari and Shlomi Weizmann said they had informed Plus500 that, in response to significant demand from a small number of institutional investors, they plan to sell today approximately 9.4 million existing ordinary shares in the capital of the Company at a price of £15.50 per Sale Share.

The Sale Shares represent about 8% of Plus500’s issued share capital and the sale is expected to raise gross proceeds of approximately £145 million for the founders.

Any Sale Shares will be sold through Liberum Capital Limited to a limited number of investors. Plus500 is not a party to the transaction, the brokerage explains, adding that it will not receive any proceeds from the sale of the Sale Shares.

After completion of the transaction, the founders will continue to hold in aggregate approximately 8% of the issued share capital of Plus500. The founders’ intention to sell reflects their desire to diversify their investments whilst raising funds for personal reasons.

Read this next

Industry News

OKX to open office in Australia, starts rivalry with Kraken in Formula 1

“Our ambition is straightforward – to become the leading crypto platform in the world. We see Australia as an indispensable part of this strategy and a key growth market.”

Executive Moves

Freemarket taps Greg Sherwin as CTO of international payments and FX-focused fintech

“At Freemarket, we are focused on providing the best optimized cross-border payments and currency exchange service to our customers and Greg’s exceptional technology expertise will help us deliver even more for our customers and support their future growth and success.”

Digital Assets

Boerse Stuttgart Digital secures BaFin authorization for crypto custody

“This is the first time that an established market participant has been licensed to hold cryptocurrencies in custody without any acquisitions. This completes the unique infrastructure we offer: of all the traditional service providers operating in the European crypto market, we are now the only one-stop-shop that’s fully regulated by BaFin in Germany for brokerage, trading, and custody of digital assets. For banks, brokers, asset managers, and family offices, this makes us the infrastructure partner of choice.”

Executive Moves hires Simone Manni as Head of Marketing, Europe

“I am proud to join, a dynamic, fast-growing FinTech company harnessing technology to disrupt traditional access to financial markets. My focus over the next few years will be to grow’s market share across western Europe and to gain a stronger foothold in countries like Italy and Germany which boasts a mature and sophisticated trading community.”

Retail FX

Axi extends partnership deal with Manchester City

FX broker Axi, previously known as AxiTrader, has renewed its flagship sponsorship deal with soccer giant Manchester City.

Digital Assets

Russia delays digital ruble pilot to May

Russia has postponed its central bank digital currency (CBDC) pilot indefinitely, which was originally scheduled for April 1, as it awaits specific legislation to be voted before the “crypto ruble” trial.

Executive Moves

Scope Markets promotes James Hughes to head of marketing

Belize-based FX and CFDs brokerage Scope Markets has promoted James Hughes, who until recently was its head of brand, to take on an expanded role as the company’s global head of marketing.

Retail FX

Fraudsters clone Financial Commission’s website, two ex-members under suspicion

The Financial Commission, an industry-specific dispute resolution service that caters to the financial services industry, today announced that it believes a clone website has been impersonating its membership roster.

Retail FX

CMC Markets warns of operational challenges in Q1

CMC Markets PLC (LSE:CMCX) said in a trading update for the fiscal year 2023 that February and March posed a more challenging environment with lower equity volumes and a higher proportion of lower margin institutional trading activity.