Playtech announces move to main London listing
Trading on AIM to be cancelled on 2 July, with trading on London Stock Exchange's main market to begin simultaneously.
Solutions giant Playtech has given notice of the intended cancellation of trading on company shares on the London Stock Exchange’s (LSE) Alternative Investment Market (AIM) ahead of the company’s application for a premium listing.
The supplier announced that it will publish a prospectus ahead of its admission to the main market on 28 June, before commencing trading on 2 July, and at the same time cancelling trading on AIM, subject to approval from the UK Listing Authority and the LSE.
Existing shareholders have been advised to “consult their own tax advisers as to the tax implications of the proposed move”.
The company’s original application for a premium listing on the LSE was rejected in March 2011, with the UK Listing Authority informing Playtech that it had not fulfilled the criteria of having a three-year track record of being responsible for 75% of its income and profit, as its joint venture with William Hill Online contributed more than 25% of Playtech’s earnings. This condition is occasionally waived when the Listing Authority considers applications.
In November last year it announced that the three-year track record of generating its revenue independently of other operators would be met by the end of 2011, allowing the Playtech board to begin preparing a fresh application.
A statement released this afternoon Playtech explained that: “The Company believes that the Official List is the most appropriate platform for the continued growth of the Group by increasing Playtech’s profile, assisting in the liquidity of the company’s shares and providing a greater range of potential investors for the company.”
Ahead of the announcement Playtech’s share price had dropped 10.5p by the close of trading to 334.5p, a fall of 3.04%.
The news comes a day after it announced the completion of a series of related party transactions, including a licensing agreement that will see Playtech gain access of B2C products and platforms developed by social games developers CTXM, Viaden Gaming and Rummy Royal “ companies owned by founder Teddy Sagi’s Skywind Holdings Limited. The deal has drawn criticism from analysts over a lack of clarity in the terms of the deal.
Nick Batram of Peel Hunt said of the deal: “Such transactions hardly help allay the fears of those concerned about corporate governance. Rather than clarify the situation with related parties, the software licensing deals appear to cloud the picture further.
“Ironically, if Playtech had acquired the business as it originally proposed, then this would not have arisen, although it did raise other questions and the upfront cost would have been significantly more,” he said.
Yesterday’s announcement also saw Playtech sign two 10-year leases with Anise Developments Limited and Anise Residential Limited, companies also owned by Sagi. The leases give Playtech use of 10,000 sq ft of office space and nine apartments in London’s Camden Town for an aggregate annual rent of £750,000.
Sagi was also confirmed as a strategic advisor to the Playtech board, for a nominal annual salary of 1.