Playtech's Teddy Sagi Sells 12% of His Shares in the CompanyPublished December 1, 2016 by Ivan P
Israeli billionaire and Playtech founder Teddy Sagi sold 12% of his share in the company, netting $412 million which he intends to use to diversify his portfolio.
Teddy Sagi, Israeli businessman best-known as the founder of Playtech, one of the leading casino software developers, has turned a profit of $412 million selling 12% of his share in the company. Although Sagi's Brickington Trading Limited initially planned to float just 10% of Playtech, high demand from the investors convinced them to up the offer.
$412 Million Worth Transaction
The initial offer of 32.3 million shares was increased to 38.7 million. The sale was closed at the price of 850 pence per share, netting Teddy Sagi a total of £330 million, which is around $412 million according to current conversion rates.
A keen interest in buying Playtech stock is hardly a surprise considering the company has a very strong market position. The last full financial report, published in February 2016, showed 38% year on year revenue growth, while adjusted EBITDA increased 22%.
Israeli Billionaire Looking to Diversify His Portfolio
The majority shareholder in Playtech, Teddy Sagi decided to offload a portion of his shares in the company as a part of his efforts to diversify his portfolio. The sale gives him a lot of cash to work with and seek opportune investments.
After the sale, Sagi's share in Playtech had dropped to 21.6%. While the billionaire will remain the largest shareholder in the company, with his share dropping below 30%, he will no longer have the power to appoint two directors to Playtech's Board of Directors.
180 Days Freezeout Period
After selling such a big number of shares, Playtech has announced no new sales will be conducted during the following 180 days. After that period expires, however, some analysts predict there will be an increase in the company's ordinary shares offered for sale.
At the same time, Playtech has been doing some shopping of its own. The company has recently acquired 70% in Consolidated Financial Holdings, announcing they expect to purchase the remaining 30% in 2019, respecting the terms of the acquisition agreement.