MAJOR SHAREHOLDER IN PLUS500 OPPOSES PLAYTECH BID
09th June, 2015 at 13:46:44
Opportunistic and exploits current regulatory issues and risks
Playtech's acquisition agreement with spread betting firm Plus500 (see previous report) has been lambasted by Plus500's largest shareholder who is reportedly set to oppose the bid saying its opportunistic and exploits current regulatory issues and risks.
Playtech's bid came just two days after UK regulator denounced Plus500's anti-money laundering checks requiring the firm to freeze UK customer accounts. Plus500's share price plunged on the back of the crisis.
25% share holder, hedge fund Odey Asset Management criticised Playtech's bid of £ 459.6 million saying it halves the £ 862 million value of the company prior to the crisis, the basis for its planned rejection of the offer.
"We understand that this cash acquisition may make sense for Plus500's management and staff, whom we expect could be further incentivised by Playtech after the acquisition has completed," Crispin Odey, founding partner of Odey Asset Management told Business Insider. "However, for independent shareholders we believe the current offer represents too great a discount compared to intrinsic valuation as a standalone entity."
However, under Israeli takeover law, only 50.1% of shareholders are required to consent to the deal reports Business Insider. With 35% of company stock already held by Plus500's management, it's not inconceivable that the deal will progress despite Odey's rejection.NOVOMATIC
ACQUIRES MINORTY STAKE IN Österreichischen Lotterien
Despite stringent pre-emption rights.
In a short statement, Austrian Investment firm B & C Industrie Holding said it had sold its BAIH subsidiary comprising a 7.94% minority stake in the part-Austrian state owned Österreichischen Lotterien (ÖLG) to Novomatic for an undisclosed consideration.
The news comes as a surprise to many mainly because of stringent pre-emption rights. Österreichischen Lotterien is majority owned by Casinos Austria GmbH along with several banks including Erste Group, Volksbanken, Bankhaus Schelhammer and now Novomatic.
"B & C has found the best possible buyer for ÖLG. The OLG and its associated companies can benefit greatly from the expertise of Novomatic'" a company spokesperson said.
Related News Tags: Playtech, Novomatic, Ovo