Can the wheeling and dealing of the Israeli billionaire proceed with Plus500? Now it's up to 5% of the embattled firm's sharholders
The decisive day for Plus500 Ltd (LON:PLUS) and Playtech PLC (LON:PTEC) is knocking on the door and the market still displays doubts about the prospects for the successful conclusion of the takeover deal between the companies.
At the time of writing, the shares of the company are trading at a 3.7 percent discount to the offer which the gaming company made for the foreign exchange and CFDs broker several of weeks ago.
Within days, the share price fell from 781 pence totaling a market cap of almost £900 million ($1.4 billion) to 198 pence, or just below £230 million ($360 million).
Odey Asset Management, founded and partially run by the veteran hedge fund manager Crispin Odey, has actively engaged in buying the dip and started purchasing the company’s shares.
At the same time, Plus500's management held discussions with Teddy Sagi’s Playtech, contemplating a deal between the companies which would secure shareholders a price of 400 pence per share, valuing the company at £460 million ($720 million).
The value of 5%
After the announcement of the takeover bid was published, Odey Asset Management, which has gradually increased its share in recent months to 25%, deemed the offer "opportunistic".
Since the asset management firm believed that the regulatory issues and near term risks to the company’s operations were temporary, it continued buying the shares of Plus500 and stated, “We believe the intrinsic value of the business on a longer term view is materially higher than 400p.”
Further to that, it welcomed a level playing field, knowing that the management of Plus500 was missing 15 percent worth of shareholder votes by stating, “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.”
As Plus500's founders represent a 35.6% of shareholders, support rate for the deal stands at a substantial 45%. With both Plus500 and Playtech subjected to Israeli legislation, a takeover bid is approved when the collective voting power of supporting shareholders surpasses 50.1%. This means that tomorrow's results will hinge on a mere 5% worth of votes.
While the market discounts some uncertainty before the vote with the share prices trading 3.7 percent below the takeover bid value, the deal is almost secure. The likelihood that Playtech or Teddy Sagi himself haven’t secured enough votes for the offer to go through in about a month and a half is very slim. In fact, the financial resources of the parties involved would have been sufficient to buy the remaining five percent from the market weeks ago.
The pending deal is the latest move in Teddy Sagi's aggressive foray into the retail forex industry. These include buying TradeFX, the holding company behind markets.com, for $224, and AvaTrade for $105 million.
Finance Magnates has also learned that Playtech put down a $90 million proposition to buy growing binary option brand 24Option, to be unequivocally rejected, and tested the waters with IronFX and UFX.com.
The company told Finance Magnates that it sees the deal with Ava as a milestone for its global trading business: "It will expand our geographical market reach, creating access to additional regulatory licenses in desirable markets and enhance our customer offering."
Specifically, it cited significant "revenue synergies through our expertise in technology and marketing and our CRM capabilities." Both of which are offered by Plus500, whose "marketing machine" was a source of envy and inspiration for many in the industry.
With Sagi's buying power remaining substantial, we may yet see more deals after the pending approval of the Plus500 takeover bid. While it remains to be seen how Teddy Sagi’s foray into the forex and binary options industry continues, it seems that tomorrow's expected consent will not mark its ending.
The decisive day for Plus500 Ltd (LON:PLUS) and Playtech PLC (LON:PTEC) is knocking on the door and the market still displays doubts about the prospects for the successful conclusion of the takeover deal between the companies.
At the time of writing, the shares of the company are trading at a 3.7 percent discount to the offer which the gaming company made for the foreign exchange and CFDs broker several of weeks ago.
Within days, the share price fell from 781 pence totaling a market cap of almost £900 million ($1.4 billion) to 198 pence, or just below £230 million ($360 million).
Odey Asset Management, founded and partially run by the veteran hedge fund manager Crispin Odey, has actively engaged in buying the dip and started purchasing the company’s shares.
At the same time, Plus500's management held discussions with Teddy Sagi’s Playtech, contemplating a deal between the companies which would secure shareholders a price of 400 pence per share, valuing the company at £460 million ($720 million).
The value of 5%
After the announcement of the takeover bid was published, Odey Asset Management, which has gradually increased its share in recent months to 25%, deemed the offer "opportunistic".
Since the asset management firm believed that the regulatory issues and near term risks to the company’s operations were temporary, it continued buying the shares of Plus500 and stated, “We believe the intrinsic value of the business on a longer term view is materially higher than 400p.”
Further to that, it welcomed a level playing field, knowing that the management of Plus500 was missing 15 percent worth of shareholder votes by stating, “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.”
As Plus500's founders represent a 35.6% of shareholders, support rate for the deal stands at a substantial 45%. With both Plus500 and Playtech subjected to Israeli legislation, a takeover bid is approved when the collective voting power of supporting shareholders surpasses 50.1%. This means that tomorrow's results will hinge on a mere 5% worth of votes.
While the market discounts some uncertainty before the vote with the share prices trading 3.7 percent below the takeover bid value, the deal is almost secure. The likelihood that Playtech or Teddy Sagi himself haven’t secured enough votes for the offer to go through in about a month and a half is very slim. In fact, the financial resources of the parties involved would have been sufficient to buy the remaining five percent from the market weeks ago.
The pending deal is the latest move in Teddy Sagi's aggressive foray into the retail forex industry. These include buying TradeFX, the holding company behind markets.com, for $224, and AvaTrade for $105 million.
Finance Magnates has also learned that Playtech put down a $90 million proposition to buy growing binary option brand 24Option, to be unequivocally rejected, and tested the waters with IronFX and UFX.com.
The company told Finance Magnates that it sees the deal with Ava as a milestone for its global trading business: "It will expand our geographical market reach, creating access to additional regulatory licenses in desirable markets and enhance our customer offering."
Specifically, it cited significant "revenue synergies through our expertise in technology and marketing and our CRM capabilities." Both of which are offered by Plus500, whose "marketing machine" was a source of envy and inspiration for many in the industry.
With Sagi's buying power remaining substantial, we may yet see more deals after the pending approval of the Plus500 takeover bid. While it remains to be seen how Teddy Sagi’s foray into the forex and binary options industry continues, it seems that tomorrow's expected consent will not mark its ending.
Interactive Brokers Expands Offerings with Daily Options on French Stocks
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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