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Playtech Sells Plus500 for CAD$227 Million

Playtech recently announced that they sold 10% of their stake – Plus500, at an online trading platform.

Playtech Sells Plus500

The shares that amounted to 11.4 million were sold at a prize of CAD$1.55 per share. The total was approximately CA$227 million, which the online casino software provider said will be used for debt reduction and general company purposes. The online gaming company assured its stakeholders that this would not affect the issuance of the interim dividend that was announced by Plus500 on the 13th of August.

Details on the Sale of Plus500

This came just a couple of days after the Plus500 founders sold 9.4 million shares for CAD$187 million, which was about half of their remaining stake and 8% of all issued shares. The founders did not give reasons as to why they decided to sell apart from ‘personal reasons’. Last year in March, they had sold 7.2 million shares already, which is 6% of the issued shares for CAD$103 million. Again, here they also stated ‘personal reasons’ for selling.

According to the Chairman of Playtech – Alan Jackson, online gaming has been expanding its base out of the black and gray markets of Asia, where government crackdowns have resulted in pretty deplorable conditions.

The company purchased an Italian online casino not so long ago, while Playtech BGT Sports also made a deal for the connection of self-service gambling stations in Mexico. More so, its sports betting operations have been expanded as they recently started operating in Portugal, where the company partnered with Sociedade de Apostas Sociais.

Overview

Playtech has been doing great in the realm of casino gambling. The company reported revenues of approximately CAD$506 million for the first half of the year. This is an increase of 4% compared to what they made during the same period, last year.