Playtech sells compete GVC stake
After the recent crackdown on gambling syndicates in Malaysia and drastic cuts on the maximum stake limits on the gambling machines in the UK, Playtech decided to sell its GVC Holdings stake to reduce debt and pursue its own deals.
GVC Stake Sold
Major online gaming and financial trading systems provider Playtech has been one of the largest shareholders in the UK high street bookmaker, Ladbrokes. It was a good strategic move since Playtech received 3.4% shares in GVC Holding when they acquired Ladbrokes earlier this year for €4.43 billion.
Via a placing conducted through Goodbody, USB Limited and Shore Capital, Playtech sold its entire holding of 19.6 million ordinary shares in GVC at price of 1010 per ordinary share for a grand total before broker commission of £198 million (€224.4 million).
Playtech shares were trading down 0.7% at 806.40p while GVC Holdings shares were down 0.4% at 1,032.00p on Thursday. Playtech selling of its GVC stake follows a 18% jump in GVC’s share price over the last few weeks amid the excitement over sports betting expansion after the US Supreme Court banned PASPA.
Playtech said the proceeds from the GVC sale “will be used for general corporate purposes which may include M&A or to reduce the amount of debt to be raised as part of the acquisition of Snaitech.”
Acquisition of Snaitech Finalized
Playtech scored a deal back in April to acquire 70.6% shareholding of Italian operator Snaitech for €846 which will be followed by a mandatory takeover offer for the remaining shares.
Since the initial deal, Playtech separately acquired nearly 9% of Snaitech’s issued share capital through various market purchases and therefore now owns 80% of Snaitech. Playtech is preparing a mandatory offer which will be completed in the next few weeks.
The complete Playtech takeover of Snaitech is expected later this year. This is looked upon as a great strategic move since the acquisition will create the first vertically integrated retail and online gaming business in the Italian fast growing and regulated market.