Key Plus500 shareholder to oppose Playtech bid

9 June 2015

Gaming software and services supplier Playtech’s proposed takeover of Plus500 could be under threat after the Israeli spread betting firm’s largest shareholder said it would oppose the bid.

As reported by iGaming Business, Playtech announced last week it had agreed to acquire the entire ordinary share capital of Plus500 in a deal that values the company at approximately £459.6 million (€627.2 million/$702.2 million).

However, it has now emerged that Odey Asset Management, which holds a 25% stake in Plus500, will oppose any bid, stating that the current offer “materially undervalues” the company.

The offer of approximately 400p per share is higher than the 367.75p Plus500 was trading at the time of writing today (Tuesday), but significantly lower than the 750p it was trading at just last month.

In a regulatory statement, Odey Asset Management said: “In our view 400p materially undervalues Plus500 and we do not intend to vote in favour of the cash acquisition of Plus500 at this price.

"Even considering the current regulatory issues and near term risks, we believe the intrinsic value of the business on a longer term view is materially higher than 400p.

“We welcome Plus500 management's approach to Playtech's proposed cash acquisition, which allows other potential bidders the opportunity to appraise Plus500 with the same information as Playtech, and which allows management to cease its commitment to Playtech's proposed cash acquisition should another bidder present a higher offer.”

Related article: Playtech to acquire Plus500