PLAYTECH TO RAISE FUNDS FOR EXPANSION
23rd November, 2011 at 07:41:24
Joint venture and bolt-on acquisition opportunities identified
Estonia-based online gambling software provider Playtech Ltd has announced a 2.5% discounted offer of 215p each on 46 511 627 Placing Shares in a bid to raise £ 100 million that will enable the company to pursue acquisition opportunities and investments mentioned recently in its interim results (see previous report).
A company statement confirms that Playtech has identified numerous bolt-on acquisition opportunities, the largest at a cost of £ 40 million, that it believes will enhance earnings and accelerate organic development.
Potential long-term partners in a number of newly or soon-to-be regulated markets, who lack online expertise to carry through their strong local brand and market presence, have been identified said the company with a view to establishing joint ventures which would likely entail the injection of Playtech operational and marketing expertise.
Playtech expects to retain a significant interest in future joint ventures and has earmarked investment capital of between Euro 15 million and Euro 30 million to develop this path. The company would also expect to license any joint venture with its own software and earn royalties on a revenue share basis, a company spokesperson said.
Mor Weizer, chief executive officer, Playtech Limited, said: "After consultation with our major institutional shareholders, I am delighted with the support we have been given.
On the basis that the placing is approved by shareholders, these funds will deliver us immediate firepower for the strategic acquisitions and joint ventures we see before us.
As part of this exercise, the Board has re-confirmed its commitment to move to the Main Market and announced a revised dividend policy.
We continue to enjoy strong current trading and, when taken all together, these actions will take Playtech to the next level."
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