Playtech’s £100 million placing – hedge your bets
Playtech already lay claim to being the world’s largest (by market cap.) online casino software company and it looks like they want to get a little bigger with the announcement of a £100 million share issue.
46.5 million shares will be offered to the public at a slight discount to Playtech’s (PTEC) current share price – 2.5% cheaper than the price quoted Tuesday last week. Playtech hasn’t been immune to global market pessimism of late sliding 25% in value over the last 3 months on the back of general EU doom and gloom as well as ongoing issues with JV partner William Hill. There’s a chance the placement price may be at a premium to market value by the time the book closes for investors!
The £100 million has been earmarked to fund new acquisition and JV opportunities. Already £40 million worth of potential purchases are under review so the company is clearly gearing up for an aggressive 2012.
As well as funding new development opportunities, the placement will help Playtech’s shares move up from London’s AIM to being traded on the main London Stock Exchange.
As for mention of a hedge in the post title…there’s no surer way to hedge your bets than to own a piece of the house your betting with! Then and again, the way share markets are moving at the moment I reckon roulette’s a safer option.
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