For popular online slots developer, PlayTech, expansion is the name of the game. Recently, the company has been expanding into a wide range of online gambling markets around the world but these numerous transactions have just not been enough. PlayTech hopes to raise over $150 million to fund additional joint ventures and acquisitions.
In order to raise this money, PlayTech has decided to offer 27.7 million shares at the discounted price of $3.35. Brickington Trading Company is currently considering underwriting the entire amount if all 27.7 million shares are not purchased.
While the idea sounds plausible, it has been criticized by industry analysts. According to market analyst Ivor Jones, the plan is an underhanded way of the company’s founder to increase his stake in the company.
Founder Teddy Sagi owns Brickington Trading Co, which ended up buying nearly $60 million worth of shares after additional investors bought $40 million. As a result, Sagi now has an additional 3% stake in the company. Should no investors have taken up the opportunity to buy the discounted shares, Sagi’s stake would have increased by 9%.
This new deal is expected to allow PlayTech to expand its online operations. The company is already one of the largest online gambling operators, and PlayTech could see even more business from around the world.
