Jason Ader: Playtech board needs an overhaul
Hedge fund investor tells EGR he wants a more independent board with fewer links to founder Teddy Sagi
Playtech needs a “board refresh”, according to activist investor Jason Ader, whose SpringOwl hedge fund has built a $100m position in the company in recent months.
Speaking exclusively to EGR, Ader identified corporate governance as one of the main reasons the London-listed provider’s stock was underperforming its peer group.
“I think the board needs to be refreshed,” Ader said. “I don’t think anybody would argue with me on that. I’d like to see a board that is independent and not tied to any interest other than long-term shareholder value.
“There’s some legacy relationships here to the founder Teddy Sagi who isn’t really involved with the business any more. We’d like a board in place that can be helpful for the management team.”
Sagi has been reducing his stake in Playtech in recent years, offloading a £337m chunk in June last year to take his share to approximately 6%.
Ader said embattled chairman Alan Jackson was “less the problem” than the overall board, despite recent press reports.
The fund manager added it was premature to discuss specific appointments, but said he had held “constructive dialogue” with CEO Mor Weizer.
It emerged last week that Ader had built a $100m position in Playtech, equivalent to around 5% of the business, and was working alongside hedge fund tycoon Crispin Odey, who holds a similar-sized stake.
Ader said: “In the coming months we’ll be working with the company on several ideas we have to unlock some of the value in the business,” although he refused to be drawn on specifics.
Playtech last week sold its entire 10% stake in retail online trading platform Plus500 for approximately £176m, following reports that Ader was pushing for assets disposals.