Plus500, the troubled spread betting company that was forced to freeze thousands of accounts in the UK in recent weeks, is being sold to Israeli gaming company Playtech at a price way below its pre-crisis value.
The board of Israel-based but London-listed Plus500 announced the deal this morning in a regulatory news update.
The deal values Plus500 at £459.6 million, way below the £862.million Plus500 was valued at before the UK’s financial watchdog ordered it to overhaul its anti-money laundering procedures two weeks ago. News of the regulatory scrutiny sent the company’s share price tumbling.
Plus500 indicated that the sale is necessary to cope with the added pressure on the business since all this blew up, saying: “Plus500 has become the subject of increased scrutiny and has received additional requests for information from its regulators in the jurisdictions in which it is licensed.
“Whilst Plus500’s products, technology and marketing skills remain strong, the recent regulatory scrutiny placed on Plus500 has highlighted the advantages of expanding the operational infrastructure to support a business of its size.”
We’ll update with more as we get it…