Odey Asset Management LLP, asset-management company and the largest sole shareholder of Plus500 feels threatened by Teddy Sagi’s Playtech planned acquisition and finds the price per share as low to its real value. Meanwhile, JPMorgan raises its stake in PLus500.
Odey, owning over 25%, informed in its statement related to Playtech’s buyout plans, that the offerred price for Plus500 is undervalued, fair price should be higher. “We believe 400p per Plus500 share in cash to be an opportunistic bid exploiting current regulatory issues and risks. 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,” added Odey in the statement.
Playtech’s proposal saw Plus500 valued at £460 million and with a bid of 400p a share to its current shareholders. Odey as the largest owner naturally asks for higher bid.
Besides the price bid struggle, JPMorgan announced on June 3 that it is lifting its stake in Plus500 to even 8.49%, only couple of days after previous increase above 5%. The company would like to take advantage of the set price in a bid from Playtech.
As for its subsidiaries, following stake is expected to be reached from Plus500 among them, together making the above-mentioned 8.49%:
JP Morgan Asset Management Holdings (UK) Limited – 3.39%
J.P. Morgan Securities plc – 5.10%.
A considerable drop below 200p of share value motivated Odey and JPMorgan to buy during last weeks. On Thursday, Plus500 shares rose to 370p at London’s Stock Exchange.
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