Playtech Bidding On UK Trading Platform Plus500
The largest online gaming platform provider Playtech has taken another bold move to diversify their casino business. Following their entry into the binary market with their TradeFX acquisition, Playtech announced they will bidding up to $703 million for the UK trading platform Plus500 Ltd.
According to report Playtech will pay up to 400 pence per share which is a bargain price. Stock price of Plus500 plummeted by nearly half in the last month due to the UK Financial Conduct Authority freezing accounts as they check into anti-money laundering irregularities. Playtech’s bid is controversial as it could be a bold move in that they are capitalizing on a temporary slump or perhaps the difficulties with the authorities are serious enough to ensure the business stays shutdown.
To cover their risk Playtech have a walk away clause if Plus500’s business falters according to CEO Mor Weizer. The share price spiked by nearly 9 percent on the news that Playtech were bidding for the company Weizer commented on the proposed bid,” We wanted to act quickly, We see an opportunity. We believe that by combining the two, we will remedy the situation. There are certain scenarios defined in the agreement that for certain material adverse change affecting the business, the transaction basically becomes void.”
As mentioned Plus500 lost almost two thirds of their value in the week of MY 22 since the FCA discovered “major failings” in the method the company proves residence and their client’s financial position. If approved the takeover should be completed by the end of September.