Playtech targets enhanced capital structure with new equity raising

Playtech has unveiled the details of a new equity fundraising that has been launched in an effort to improve its capital structure.

The gaming software and services supplier will place up to 29,050,000 ordinary shares with the price per placing share to be determined through an accelerated bookbuild.

The placing will represent approximately 9.9% of Playtech’s current issued share capital, with the firm hoping to raise up to £250 million in additional equity.

Brickington, currently the firm’s largest stakeholder with a 33.6% stake, intends to take up 33.6% of the placing in order to maintain its current shareholding.

Books have been opened with immediate effect, with Canaccord Genuity having been appointed sponsor and joint bookrunner, while UBS has been named joint bookrunner and Shore Capital confirmed as lead manager to the placing.

Playtech said placing proceeds will be used to fund future acquisitions, including the planned purchase of Plus500, and the possible acquisition of TradeFX, which the firm has the option to buy.

Mor Weizer, chief executive officer of Playtech, said: “Playtech’s enviable M&A track record has been founded on its ability to be pro-active, facilitated by financial flexibility which has allowed it to be able to act from a position of strength.

“Today’s equity fundraising, in conjunction with new debt facilities, which we are in the process of securing, will improve the efficiency of Playtech’s capital structure whilst maintaining the financial flexibility to pursue acquisitions in both the gambling and financial trading space to deliver long term value for our shareholders.”

Following the news of the placing, Playtech also confirmed that it has purchased more shares in Plus500 in a move that increases its share in the company to 9.36%.

Plus500’s founders and members of management, representing 35.6% of Plus 500’s issued ordinary share capital, have undertaken to procure the vote in favour of Playtech’s cash offer of 400p per Plus500 share.

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