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.

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