5 October, AtoZForex.com, Lagos – Following reports of a pending approval from UK’s Financial Conduct Authority over the Playtech acquisition of Plus500, now it has been reported that the Central Bank of Ireland (CBI) has also opposed the proposed $105 million Playtech AvaTrade acquisition.
Playtech’s board announced that it has received an official letter from the Central Bank of Ireland (CBI) opposing the proposed deal, without divulging the exact content of the letter. In the meantime, the Financial Services Commission of the British Virgin Islands has already given Playtech its approval to acquire AvaTrade.
Ongoing discussion with CBI
Playtech clarified that it has taken legal advice in regard to the circumstances at hand. Furthermore, the company will be seeking clarification from the CBI and engage with them, in order to discuss certain issues raised in the letter, which the company believes can be addressed to the CBI’s satisfaction.
Playtech acquisition spree
So far, Playtech which started out as a gaming technology company has successfully acquired strong FX brands like Markets.com and TopOption. Also, the gaming company has been in a high profile acquisition bid for purchase of a controlling stake in the ailing Plus500, as the agreement reached by the board of the companies valued Plus500 at 400 pence per share in cash. This puts the eventual valuation of the company at £459.6 million, which is almost half the value of the company.
FCA hurdle over Plus500
Even though it’s expected to take longer to finalize the deal, the hurdle is not expected to pose any major issue to the deal. At the moment the acquisition is anticipated to be concluded before the end of November. PlayTech’s board of directors have stated that: “no regulatory hurdles are foreseen for completion of the acquisition of Plus500.”
Even with Playtech acquisition of AvaTrade, the gaming company’s acquisition spree is probably not over, as Playtech announced that it has agreed a €200 million unsecured revolving credit facility with Barclays Bank PLC and Royal Bank of Scotland plc. The funds will be used to finance its recent acquisition as well as other growth prospects.
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